Here’s How Much You’ll Actually Win if You Hit the Powerball Jackpot
The Powerball jackpot is now up to $1.3 Billion. That's with a capital B! So you want to be a billionaire? Sorry. Even if you beat the odds and win the jackpot, you'll be going home with significantly less than a billion.
How much money you'll actually take home from a Powerball jackpot depends on three factors. How you plan to take the money, how much goes to federal taxes and how much goes to state taxes.
MegaUSA.com breaks down exactly how much you'll get depending on what state you live in. Here in Maine, if you are the sole winner of the $1.3 billion jackpot, 25% will go to federal taxes and 5% will go to state taxes. Where things get confusing is that more taxes are taken out if you opt for the lump sum payment and you also get less to begin with.
If a Maine winner takes the annuity, they will receive $910 million over 30 years, with $325 million going to federal taxes over the 30 year period, and $65 million to the State of Maine. A lump sum Maine winner will take home less than half of the $1.3 billion jackpot by forfeiting $494 million. Federal taxes take another $201.5 million while the State of Maine grabs $40.3 million. That leaves you with a one time payment of $564,200,000.
That's still nothing to sneeze at and you'll still be set for life as long as you don't get all crazy and try and buy a half billion dollar company that goes under in a year.
What will you do with all that money if you win? Let us know in the comments below or on Facebook or Twitter. Good luck!
UPDATE: When this article was first posted, I got my billions and millions confused and they have now been corrected. Also, math is hard.