Winning ticket for Powerball’s $366.7 million jackpot sold in Vermont. Here’s the tax bite for the winner

In the event you’re holding the successful ticket for Powerball’s $366.7 million jackpot, remember about your silent associate: Uncle Sam.

After rolling larger for about two months of three weekly drawings with no winner, the lottery recreation’s high prize was nabbed in Wednesday evening’s drawing. The ticket was bought in Vermont, which marks the primary time the jackpot has been received in that state. 

In fact, the marketed quantity is not what the winner will find yourself with. Whether or not the prize is taken as an annuity of 30 funds over 29 years or as a direct, diminished money lump sum, taxes find yourself taking an enormous chunk out of the windfall.

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For this jackpot, a required federal tax withholding of 24% would scale back the $208.5 million money possibility — which most jackpot winners select — by about $50 million.

Nevertheless, the highest federal marginal tax charge is 37%, which applies to revenue above $523,600. In different phrases, there probably can be extra taxes due at tax time. For illustration functions: If the winner had no discount in revenue — for instance, important charitable contributions from the winnings — one other 13%, or $27.1 million, can be because of the IRS ($77.1 million in all).

The Powerball jackpot has reset to $20 million for the subsequent drawing, scheduled for for Saturday evening. The Mega Thousands and thousands jackpot, in the meantime, stands at $360 million ($199.3 million money possibility) for Friday evening’s pull.

The possibility of a single ticket matching all six numbers drawn in Powerball is about 1 in 292 million. For Mega Thousands and thousands, it is 1 in 302 million.