Powerball Jackpot Now at $1 Billion

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The Powerball jackpot has soared to an estimated $1 billion, making it the third-largest prize in the game's history.

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Winners have two choices: a $516.8 million lump sum or $1 billion in 30 annuitized payments. Both options are estimates before tax.

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Some financial experts have recommend the lump sum option to invest winnings sooner and potentially maximize returns.

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Powerball jackpot offers the allure of life-changing wealth, but winners need to be mindful of the significant tax implications that come with it.

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Winners must pay a 24% mandatory federal withholding on winnings above $5,000, which goes directly to the IRS.

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Opting for the $516.8 million cash option automatically reduces your prize by approximately $124 million due to the 24% withholding.

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Winners in the highest tax bracket, which currently stands at 37%, may see an automatic reversion to 39.6% after 2025.

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For single filers, the tax owed is $174,238.25 plus 37% of the amount over $578,125..

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Married couples filing jointly owe $186,601.50 plus 37% of the amount above $693,750.

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State taxes also come into play, with rates varying by location. One thing that's for sure?

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Jackpot winners should seek professional financial advice to navigate the complex tax landscape and make the most of their newfound fortune!

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