$1.787 billion Powerball jackpot winning tickets sold in two states. One of them could pay a higher tax bill.
There are two big winners for the $1.787 billion Powerball jackpot — and one could face a bigger tax bill.
Winning tickets sold in Missouri and Texas matched all six numbers from Saturday night’s drawing, and those individuals will split the second-largest lottery jackpot, according to Powerball.
Each ticket holder can pick between two pretax options: a lump sum of $410.3 million or an annuitized prize of $893.5 million. The annuity consists of one upfront payment, followed by 29 annual payments that increase by 5% each year. Roughly $98.5 million withheld for the IRS
Both Powerball jackpot winners will face an automatic federal tax withholding. For prizes over $5,000, the IRS requires a mandatory 24% withholding.
If the winners choose the $410.3 million lump sum payment, the 24% federal withholding reduces their prize by roughly $98.
