Financial planner Sean Caldwell and son Jacob Caldwell discuss the benefits of saving early in life on ‘The Big Money Show.’
The Powerball jackpot climbed to an eye-popping $1.4 billion ahead of Saturday night’s drawing. This is Powerball’s third-largest jackpot in history with a cash value of an estimated $643.7 million.
The swelling purse followed Wednesday’s night drawing without a winner. Those winning numbers were 19, 35, 54, 63, 64, and the Powerball is 1. The Power Play was 2X.
Though the grand prize still stands, 10 players won the game’s second-tier prize in Wednesday’s drawing. Seven people won $1 million while three people selected the Power Play option to win $2 million.
2 LOTTERY TICKETS WORTH $2.68 BILLION COMBINED REMAIN UNCLAIMED
The Powerball jackpot now sits at an estimated $1.4 billion for Friday’s drawing after no players claimed to match all six winning numbers on Wednesday. (Natalie Kolb/MediaNews Group/Reading Eagle via Getty Images / Getty Images)
The previous Powerball jackpot totaled $1.08 billion and was claimed on July 19 by one person in California.
Drawings are held three times per week: every Monday, Wednesday and Saturday.
POWERBALL JACKPOT GROWS TO AN ESTIMATED $960M- 4TH LARGEST IN HISTORY
Powerball tickets are $2 per play and are sold in 45 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
Tickets for the Florida Lottery Powerball are purchased at the Lawrence Shell gas station in Boynton Beach, Florida. (REUTERS/Joe Skipper / Reuters)
The future tax bill that a lottery winner will see has often garnered attention since the total take-home amount will be far smaller after taxes.
For a jackpot of the current size, a federal withholding tax would apply to it. That tax, worth 24%, shaves quite a bit of money off the final amount the lucky lottery ticket holder would ultimately receive.
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A woman holds Powerball lottery tickets inside a store in Homestead, Florida, on July 19, 2023. (Giorgio Viera / AFP / Getty Images)
The federal income tax also draws from the jackpot later.
It would likely be the highest bracket, which the IRS currently has set for 2023 at 37% for income above $578,125 for non-married individuals. For couples jointly filing, it is at that share for income over $693,750, according to the IRS.
In the event of a one-time cash jackpot payment that makes the 37% bracket come into effect, the winner would therefore see about 13% more go to the federal government after the withholding tax.
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Meanwhile, where a jackpot winner calls home oftentimes brings state income taxes into the play.
In nine states, residents aren’t subject to state-levied income taxes. FOX Business previously reported that they include:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
California, while having an income tax, does not apply state taxes to prizes, according to the California Lottery’s website.
The most recent time that the Powerball grand prize was won was in July. It came in at $1.08 billion at that point. (Tasos Katopodis / File / Getty Images)
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USAMega.com revealed the winner of a $1.4 billion jackpot would see $405,568,045 after federal taxes if the one-time cash payout option is chosen, and that doesn’t include state taxes, if applicable.
The annuitized payments would come out to 30 payments of $29,437,045, also before any applicable state taxes.
Megan Henney contributed to this report.
