What You Need To Know About The $620 Million Powerball Drawing
A jackpot of $620 million will be up for grabs in the next Powerball drawing on Wednesday night following a steep rise in ticket sales over the past week. But where does this prize rank in the all-time list, what is the cash value of the jackpot and what will be the tax obligations if you win? Find out all the key facts.
Is this Powerball’s Biggest Jackpot?
In terms of sheer size, tonight’s $620 million jackpot is not even close to the record. The highest ever Powerball prize of $1.58 billion was split between three winning tickets back in January 2016. However, the current jackpot is number three in the rankings and the largest to have been offered on the game since Massachusetts resident Mavis Wanczyk banked $758.7 million in August 2017. It may also be the case that just a couple more rollovers might push the jackpot towards record territory, with lottery fever already sweeping across the nation.
Go to the Winners page to find out more about the biggest Powerball winners, as well as the most successful states.
What is the Cash Value of the Jackpot?
The cash value of the jackpot is set to be around $354 million. If you match the full winning line, you can choose between taking the cash as a lump sum straight away, or the full $620 million as an annuity to be paid out over 29 years. The annuity figure is larger because it represents how much you will receive if the money is invested for you by the lottery. Take a look at the Cash vs Annuity page for more information.
How Much Will Be Taken Out in Taxes?
Whether you take the cash or the annuity, your prize will be subject to taxes if you win the jackpot. There will be a federal withholding of 37% regardless of your location, with around 25% taken at the point of payout and the rest due at the end of the tax year.
You may also have to pay state tax depending on where you live. New Yorkers suffer the most with a state tax of 8.82%, while the tax rate in Maryland is not far behind on 8.75%. However, there are several jurisdictions where you will not face any additional withholding. See the Taxes page to learn more.
How Should You Claim The Prize?
If you win the jackpot, you need to collect your money in the state where you bought your ticket. Each jurisdiction has its own limit for how long tickets remain valid, ranging from 90 days in New Mexico to a year in several states. You will need to visit the state lottery’s headquarters to collect your prize in person. Go to the page on how to claim your winnings to see where you would need to go, along with details of how to claim smaller prizes if you miss out on the jackpot.
What are the Chances of Winning?
The chances of winning are the same for a big draw as they are for any other draw. The jackpot odds are 1 in 292,201,338 for each line of numbers you enter, regardless of how many times you have played in the past or how you go about choosing your numbers. However, as more tickets are expected to be sold than for a normal draw at a lower level, there is a better chance that someone will win the jackpot.
You can visit any authorized retailer in a participating state to make sure that you are at least giving yourself an opportunity to win. Pick five main numbers from 1 to 69 and a Powerball between 1 and 26, then check back on the Numbers page straight after the draw to see if you are a winner. Good luck!
Page Last Updated: 24/10/2018 11:23:07