The Powerball jackpot jumped to $875 million. Here’s what to expect for taxes if you score the winning ticket.
The Powerball jackpot rose to an estimated $875 million ahead of Saturday’s drawing, growing to the third-largest prize in the game’s history, the lottery announced.
Of course, the estimated windfall is a pre-tax number based on 30 years of annual payments, and the lump sum payout is an estimated $441.9 million.
Either way, the winner takes home a significantly smaller payout after the IRS cut — and state taxes could further reduce the prize.
If you win the jackpot, experts suggest working with a tax professional, financial advisor and estate planning attorney immediately.
« It’s all about protection and paying the least amount of taxes possible, so working with professionals is very important, » said certified financial planner John Chichester Jr., founder and CEO of Chichester Financial Group in Phoenix.
He said winners who choose the 30-year annuity payments option may have « a lot more flexibility » for tax planning.
