$2.04 Billion Powerball Winner Takes Home $628 Million After Taxes

$2.04 Billion Powerball Winner Takes Home $628 Million After Taxes

image source - Gooogle

The winning Powerball ticket was sold at Joe’s Service Center in Altadena, California, entitling the ticket holder to a massive $2.04 billion jackpot.

image source - Gooogle

The winning numbers were 10, 33, 41, 47 and 56, with a Powerball of 10.

image source - Gooogle

Winning the massive $2.04 billion Powerball jackpot would be life-changing, but many people wonder just how much of the pot will be eaten up by taxes.

image source - Gooogle

That can vary a lot, depending on what state the winner lives in and how they are paid. The winner can pick a cash lump sum or payments over time.

image source - Gooogle

The lump sum is only about half the alluring top line prize. If the winner picks the lump sum, that $2.04 billion drops to $997.6 million.

image source - Gooogle

Of course that is before taxes. To get the full $2.04 billion instead, the winner would have to pick the 30 annual payments.

image source - Gooogle

That works out to about $68 million a year, again, before taxes. Most winners seem to take the cash, but whether it is cash or installments, what’s the tax bill?

image source - Gooogle

From the start, the winner losses 24% federal tax withholding that goes off the top to the IRS. On the $2.04 billion win, the cash election is really $997.6 million.

image source - Gooogle

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