Topline
The Powerball jackpot climbed to $515 million—the biggest lottery prize of the year so far—after no tickets matched the numbers drawn on Wednesday night, although the eventual winner is likely to take home a much smaller amount after paying their taxes.
Key Facts
The six numbers drawn on Monday night were 5, 20, 29, 39, 53 and red Powerball 6.
If a winner emerges in the next draw, they will have a choice between receiving the $515 million prize spread over 30 annualized installments or a one-time lump-sum cash prize of $242.7 million.
If the lump sum prize—usually the more popular option—is picked, the winnings will drop to $184.45 million.
Depending on their taxable income, the winner could face a federal marginal rate as high as 37%, further cutting their winnings down to $152.9 million.
If the installment route is chosen, the annualized payments of $17.2 million could drop to $10.8 million if the 37% federal marginal rate is applied.
Depending on their state of residence, the winner could face additional taxes, as some states like New York tax lottery winnings at 10.9%, while others like Texas, Florida, and California don’t.
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What To Watch For
The next drawing for the Powerball lottery is set for Saturday night.
Big Number
1-in-292.2 million. Those are the astronomical odds a Powerball ticket buyer has to overcome to win the jackpot. The Powerball winning odds used to be slightly better than the Mega Millions jackpot’s even more abysmal odds of 1-in-302.6 million. However, the Mega Millions lottery announced changes to its rules this week, which slightly improved its jackpot winning odds to 1-in-290.4 million.
Key Background
On Tuesday night, a Mega Millions ticket buyer in Illinois won a $349 million jackpot to become the biggest lottery winner of the year so far. The biggest Powerball win of the year so far occurred in January, when a single ticket buyer from Oregon won a $328.5 million jackpot.
Further Reading
Powerball Jackpot Nears $500 Million—Here’s What The Winner Could Take Home After Taxes (Forbes)
Mega Millions Raising Ticket Prices But Jackpots Getting Much Bigger—Here’s What To Know (Forbes)
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