{"id":502019,"date":"2022-11-09T18:11:47","date_gmt":"2022-11-09T18:11:47","guid":{"rendered":"https:\/\/resolveyourtaxes.com\/?p=502019"},"modified":"2022-11-09T18:15:18","modified_gmt":"2022-11-09T18:15:18","slug":"11-09-22-2-04-billion-powerball-winner-takes-home-628-million-after-taxes","status":"publish","type":"post","link":"https:\/\/resolveyourtaxes.com\/?p=502019","title":{"rendered":"11\/09\/22 $2.04 Billion Powerball Winner Takes Home $628 Million After Taxes"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"502019\" class=\"elementor elementor-502019\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-106fbb53 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"106fbb53\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-21d25fcf\" data-id=\"21d25fcf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-8f08b85 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8f08b85\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-69aa65f5\" data-id=\"69aa65f5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5a4c48b7 elementor-widget elementor-widget-heading\" data-id=\"5a4c48b7\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">11\/09\/22 $2.04 Billion Powerball Winner Takes Home $628 Million After Taxes<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bd03f2a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bd03f2a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-91e2fbc\" data-id=\"91e2fbc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-cf250a7 elementor-toc--minimized-on-tablet elementor-widget elementor-widget-global elementor-global-705 elementor-widget-table-of-contents\" data-id=\"cf250a7\" data-element_type=\"widget\" data-settings=\"{&quot;exclude_headings_by_selector&quot;:&quot;h1&quot;,&quot;headings_by_tags&quot;:[&quot;h2&quot;,&quot;h3&quot;,&quot;h4&quot;,&quot;h5&quot;,&quot;h6&quot;],&quot;marker_view&quot;:&quot;numbers&quot;,&quot;minimize_box&quot;:&quot;yes&quot;,&quot;minimized_on&quot;:&quot;tablet&quot;,&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\t11\/09\/22 $2.04 Billion Powerball Winner Takes Home $628 Million After Taxes: Contents\t\t\t<\/h4>\n\t\t\t\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--expand\"><i class=\"fas fa-chevron-down\"><\/i><\/div>\n\t\t\t\t<div class=\"elementor-toc__toggle-button elementor-toc__toggle-button--collapse\"><i class=\"fas fa-chevron-up\"><\/i><\/div>\n\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<i class=\"elementor-toc__spinner eicon-animation-spin eicon-loading\" aria-hidden=\"true\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ff86960 elementor-widget elementor-widget-heading\" data-id=\"ff86960\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">$2.04 Billion Powerball Winner Takes Home $628 Million After Taxes<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cfd42e4 elementor-widget elementor-widget-text-editor\" data-id=\"cfd42e4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>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. 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.<\/p><p>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. Of course that is<em>\u00a0before<\/em>\u00a0taxes. To get the full $2.04 billion instead, the winner would have to pick the 30 annual payments. 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\u2019s the tax bill?<\/p><p>From the start, the winner losses 24% federal tax withholding\u00a0that goes off the top to the IRS. On the $2.04 billion win, the cash election is really $997.6 million. Tax withholding of 24% amounts to $239.4 million, leaving $758.2 million. But the IRS isn\u2019t done yet. Although only 24% is\u00a0<em>withheld\u00a0<\/em>and sent directly to the IRS, our lucky winner will owe a lot\u00a0<em>more\u00a0<\/em>in April of 2023. Since federal income tax rates go up to 37%, and the winner is in the top 37% bracket, another 13%\u2014$129.7 million\u00a0<em>more\u00a0<\/em>in taxes\u2014is due on April 15.<\/p><p>That\u2019s the spread between the 24% withholding tax rate and the 37% tax rate. That\u2019s a\u00a0<em>big<\/em>\u00a0check to write on April 15. Winners who do not plan ahead may have trouble paying their taxes the year\u00a0<em>after<\/em> they win. That\u2019s one reason the winner should bank some of the money to be sure they have it on April 15. If you add the 24% withholding tax plus the 13% extra tax the winner will pay April 15 together, you get a federal tax of $369.1 million.<\/p><p>The winner takes home $628.5 million after\u00a0<em>federal<\/em>\u00a0tax. Then, depending on whether the winner\u2019s\u00a0<em>state\u00a0<\/em>taxes lottery winnings, he may have to add state taxes too. Most states have an income tax, from California\u2019s high 13.3% on down. But as harsh as California is, this is one place where California tax law is surprisingly favorable: Powerball winnings are exempt in the state. Just think if California had taxed the win, that would have added\u00a0<em>another\u00a0<\/em>$132.7 million in taxes. But if the lucky winner resides in another state that taxes Powerball winnings, the tax bill could continue to climb.<\/p><p>Click here to read the article:\u00a0<\/p><p><a href=\"https:\/\/www.forbes.com\/sites\/robertwood\/2022\/11\/09\/204-billion-powerball-winner-takes-home-628-million-after-taxes\/?sh=668eef527bbe\">$2.04 Billion Powerball Winner Takes Home $628 Million After Taxes (forbes.com)<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-ed0c9c6 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ed0c9c6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-f4e7ed0\" data-id=\"f4e7ed0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>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. 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.<\/p>\n","protected":false},"author":1004,"featured_media":502020,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-502019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts\/502019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/users\/1004"}],"replies":[{"embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=502019"}],"version-history":[{"count":4,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts\/502019\/revisions"}],"predecessor-version":[{"id":502024,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/posts\/502019\/revisions\/502024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=\/wp\/v2\/media\/502020"}],"wp:attachment":[{"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=502019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=502019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/resolveyourtaxes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=502019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}