The winner of the $1.76bn Powerball jackpot may only get $575 million after taxes if they take the lump-sum option
- A lucky person in California won the $1.76 billion Powerball jackpot on Wednesday.
- If the winner opts to take the lump-sum amount, they will receive $783.3 million before taxes.
The winner of the $1.76bn Powerball jackpot may get a maximum of $575 million after taxes if they take the lump-sum option.
The winning ticket was sold on Wednesday at Midway Market & Liquor in Frazier Park, California, which is roughly 70 miles north of Los Angeles, an official statement said.
The winning numbers were 22, 24, 40, 52, 64 and the Powerball 10.
It is the second-largest jackpot in US history and comes after no tickets matched all six numbers drawn Monday night.
The winner's identity has not yet been revealed. It is also unclear whether or not they will choose to receive a payout spread over 30 annual installments or a lump sum amount, though most usually go for the latter.
If the winner chooses the lump sum payment, the amount will drop to $575 million after a mandatory federal tax withholding of 24, according to Forbes.
This number could drop even more depending on the winner's taxable income as they may face a federal marginal rate of up to 37%.
The winner could face an additional cut depending on their state of residence. While California doesn't tax lottery winnings, states like New York do.
"Congratulations to the newest Powerball billionaire and the millions of Powerball players who won other cash prizes in last night's drawing," said Drew Svitko, Powerball Product Group Chair and Pennsylvania Lottery Executive Director.
A portion of the sales goes toward public services and programs supported by lotteries nationwide, Svitko added.
This is the fourth time this year that a lottery jackpot amount has crossed $1 billion.