It may be Halloween, but the best treat this season could be winning the Powerball, which now sits at a whopping $1 billion and has a cash option of about $497.3 million. The jackpot will be the second-largest in Powerball’s 30-year history and the fifth-largest in U.S. lottery history if someone wins it Monday night. Tonight’s jackpot will take place in Tallahassee, Florida at about 10:59 p.m. Drew Svitko, Powerball Product Group Chair and Pennsylvania Lottery Executive Director released a statement about the current jackpot saying, “This is only the second time that Powerball’s advertised jackpot has reached $1 billion, while playing for a jackpot of this magnitude is exciting, please remember to play responsibly.”
On Saturday, according to the Multi-State Lottery Association, seven tickets matched five numbers, but not the Powerball. One ticket sold in Florida won $2 million, and six tickets won $1 million each.
How much will a person actually receive if they win the lottery? Lottery winners can claim their $1 billion prize either monthly over 30 years or in a lump sum, which is what most lottery winners do. There is an estimated lump sum of $497 million, according to Powerball, which would be subject to a 24% federal tax withholding of roughly $119.3 million, leaving about $377.7 million for the winner. Sounds good right? In addition, the winner would have to pay extra taxes at higher brackets: If you have no additional income, no dependents, or no itemized deductions (like large charitable contributions), the winner would also owe another $64.6 million in additional taxes, leaving the winner with about $313.3 million before state taxes. However, if a winner opts to take their full $1 billion in winnings over 30 years they would receive average payouts of $33.3 million before taxes each year.