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.
