Someone in California just won the record $2.04 BILLION Powerball. Here's what the taxes on that win look like.
· · Nov 8, 2022 ·

When I say someone won $2.04 billion, I mean the government won and it gave a consolation prize to the citizen who drew the Willy Wonka ticket.

Someone who bought a Powerball ticket in Southern California has won a record $2.04 billion Powerball jackpot after more than three months without anyone hitting the top prize.

The winning numbers drawn Tuesday morning at the Florida Lottery draw studio in Tallahassee were: white balls 10, 33, 41, 47 and 56, and the red Powerball was 10.

Powerball Product Group Chair Drew Svitko issued this statement:

Congratulations, to the lucky ticket holder in California and the millions of other Powerball players who won other prizes in the drawing. On behalf of participating lotteries, I would like to thank our players who joined us on this historic jackpot run. A portion of every Powerball ticket purchased will stay in your state to support your local communities.

The winner can either receive all $2.04 billion over 29 years or take $997.6 million as a cash payout.

Then come the taxes.

The federal government automatically takes 24% in a withholding tax, but that would bump up to 37% in total income tax when they file their taxes for the year.

Then there's the state taxes. Amazingly, California actually doesn't tax lotto winnings (some states take up to 8%), but it does have a 13.3% tax for the highest income bracket.

Oh, and any interest the money makes also gets taxed.

After all that, the winner can afford to live a solidly middle-class life paying California prices!


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