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Arizona Lottery Player Wins $473.1 Million Jackpot and Pays a Ton In Taxes
A single lottery ticket sold in Arizona was lucky enough to be the Powerball jackpot winner, gifting its owner a whopping $473.1 million. While that’s a jawdropping amount of cash, you have to remember–it’s not the exact total that the winner will be walking away with. Good ol’ Uncle Sam will have to dip his hand into the winnings, and the amount taken out will be different depending on how the winner receives their prize.
Lottery Winnings Tax Rates
When you win these type of lotteries, you have two options as to how you want to receive your prize. You can either take it in a one-time lump sum, or you can receive it as an annuity of 30 payments over 29 years.
When looking at this jackpot, a federal tax withholding of 24% would reduce the jackpot total to $283.3 million when taking the lump sum option. This is a $68 million decrease.
But that’s not it! You have to consider federal and state taxes that are due in April every year–and the top bracket federal tax rate is currently 37%, meaning at least another $36.8 million would be due to the IRS at the corresponding tax date.
And then there’s state tax–and this is Arizona so the rate is 2.98%. This would account for $8.4 million, making the minimum total gone to taxes $113.2 million.
How To Play The Lottery Online
At the end of the day, you’re walking home with $360 million–and that’s fine by me. If someone wants to break me off maybe a million of that I’d be happy–but in the meantime, I’ll be taking the chances playing the lottery on Jackpocket.
Jackpocket is an online courier service that allows you to buy state lottery tickets through their state-of-the-art app. Jackpocket is legal in the following states:
- New Hampshire
- New Jersey
- New York
- Washington DC
If you use the promo code ODDSSEEKER upon registration, Jackpocket will gift you a free $2 to play the state lottery!