(Nexstar) – A new drawing occurred, but unfortunately, no one managed to win the Powerball jackpot on Wednesday night. The current jackpot has climbed to approximately $950 million, edging closer to being one of the largest in Powerball history.
The jackpot saw significant growth from Monday to Wednesday. It started the week at $815 million and increased to $850 million by Wednesday morning. With the next drawing on Saturday, some speculate it could even exceed the $1 billion mark.
When it comes to winning the Powerball, the benefits can vary based on your state’s lottery tax rates. If you do win, estimating your take-home amount requires some careful consideration of federal and state taxes.
Imagine you beat the odds of 1 in 292.2 million. While it’s hard to say exactly how much the jackpot will be by Saturday, the cash option is estimated at $958.9 million right now.
No matter where you are, the federal government will immediately withhold 24% of your winnings. With additional taxes taken into account, that number could rise to about 37%. USA Mega.
Some states don’t impose extra state lottery taxes. For instance, residents of California, Delaware, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming won’t have additional amounts withheld, although you may still owe some tax later.
Winners residing in these nine states will take home substantial portions of the jackpot. Depending on the option chosen, winners can anticipate approximately $599.8 million over 30 annuity payments or a $270.2 million lump sum; estimates from USA Mega.
In nearly all states but two, pension payouts would exceed $500 million, according to estimates. In New Jersey and New York, where taxes are highest, payouts are around $497.7 million and $496.2 million, respectively.
The following states carry the steepest state tax rates on significant lottery wins:
The District of Columbia imposes an 8.5% tax on lottery winnings as well.
There are many factors to weigh when considering your newfound wealth. Professionals often advise creating a solid plan and keeping your winnings as private as possible. Unfortunately, not all states allow for anonymity when claiming prizes. In California, for example, even though payouts are likely to be the largest, state laws require winners to disclose their name and the ticket’s purchase location.
Only about half of the states that participate in Powerball provide anonymity options for winners.
If you’re feeling lucky, the next drawing is set for Saturday at 10:59 PM. Each Powerball ticket costs $2 and can be purchased in 45 states, as well as Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
