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The $473.1 Million Powerball Jackpot Has Been Won. The Tax Bill Is Attached!

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After the Internal Revenue Service (IRS) deducts its share of the windfall, a single Arizona lottery ticket is about to transform someone’s life.

The $473.1 million Powerball jackpot was won by a single ticket on Wednesday night’s game. Due to robust ticket sales, the amount was larger than expected.

The listed prize amount isn’t what the winner will actually receive. There is a significant tax burden on gains, regard

less of whether they are accepted as a 30-payment annuity spread out over 29 years or as a smaller-than-expected lump-sum payout right away.

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The $283.3 million cash option would be reduced by around $68 million if a mandatory federal tax withholding of 24% were applied to this jackpot.

However, because the maximum federal tax rate is 37%, this amount is often due when filing one’s taxes. Another 13 percent of the profits (or $36.8 million) would go to the IRS if the winner had no drop in income — for example, substantial charitable contributions from the earnings.

State taxes will also be levied in Arizona. According to the Arizona Lottery, the top effective tax rate for the tax year 2022 is 2.98 percent, resulting in a lump sum payment to the state of $8.4 million.

You have 180 days to claim your prize if you are the lucky winner!

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