TL;DR by CuriousCats.ai
Powerball jackpot and Maryland's latest winner
- Maryland has produced a second consecutive $1 million Powerball winner, with a ticket sold in College Park for the Aug. 1 drawing following a July 29 winner in Odenton.
- The Powerball jackpot has grown to $748 million, with winners having the option to take the full amount in 30 annual payments or a lump sum worth about $325.1 million immediately.
Context on Powerball winnings and taxes
- Most winners opt for the lump sum; they face a 24% federal withholding tax, bringing the prize to about $247 million, and the top 37% federal marginal rate could reduce it further to about $204.8 million.
- Choosing the annuity means 30 payments growing by 5% each year, totaling about $471 million after federal taxes.
- Winners may also owe state taxes as high as New York’s 10.9%, while Texas, California and Alaska do not tax lottery winnings.
- The Powerball jackpot has not been won since May 2, and Maryland players have won more than $6 million in prizes since then.
CuriousCats Full Story
Key Insight
“A lump-sum payout would yield about $325.1 million before 24% federal withholding and a 37% top marginal rate cut it to about $204.8 million; the annuity pays 30 installments growing 5% yearly, about $471 million after federal taxes. State taxes can reach New York's 10.9%, and the jackpot hasn't been won since May 2.”
CuriousCats studied:
1
Forbes
Forbes“The Powerball jackpot grew to $748 million after no winning tickets were drawn on Saturday night, however a potential winner would ultimately take home far less after taxes.”
Forbes →2
KOMO
KOMO“PRINCE GEORGE'S COUNTY, Md. (7News) — Someone who bought a ticket at a in College Park, Maryland, is now $1 million richer.”
KOMO →
