Topline
The Powerball jackpot rose to $546 million – the third-largest lottery prize of the year so far – after no ticket matched all six numbers drawn on Wednesday night, although the eventual winner will take home a much smaller payout after taxes and deductions.
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Key facts
The six numbers drawn on Wednesday evening were 29, 39, 43, 51, 65 and Red Powerball 23.
If a winner emerges in the next drawing, they will be able to choose between winning the $546 million prize, spread over 30 annual installments, or a one-time cash payout of $255 million – the preferred choice for most winners.
If the cash prize is chosen, winnings will first drop to approximately $194 million after a mandatory 24% federal withholding is applied.
The winner would likely face a federal marginal rate as high as 37%, depending on their taxable income, further reducing their winnings to about $160.6 million.
If the installment route is chosen, the winner’s annual payments would drop from about $18.2 million to $11.47 million after the 37% federal marginal rate is applied.
Depending on the home state, the winner may face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida and California, do not.
What to pay attention to
The next Powerball jackpot drawing will take place on Saturday evening. The Mega Millions lottery will hold a drawing Friday night for a jackpot that has now risen to $965 million.
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