That’s right y’all! You could be rockin’ out with the rich and famous by Sunday morning. All you gotta do is hit the Powerball!
Saturday evening’s Powerball draw will be around $625 million dollars! Making it the 7th largest lottery in history.
But before you count that moohlah, you gotta pay Uncle Sam. Now you could choose to take the payment over 29 years and keep the full sum. Or, like most winners do, just take the lump sum. No matter what you choose, 24% comes off the top.
Then when taxes are due, plan on paying another 13% , unless you made a large charitable contribution.
So, if you are the lucky person who bucks the 1-in-292 million odds of hitting the Powerball, the cash option math would look like this:
Cash Option: $380.6 million
24% off top: -$91.7 million
Year one tax time: -$49.5 million
Total: $239. 8 million.
For those with state income tax- go ahead and dedust that also.
So, there you go! If you hit, please remember this writer. And, get a lawyer, tax lawyer, and good financial advisor.