Winning a massive jackpot like PowerBall’s 550 million dollar prize sounds great… until you think about the taxes.
Here’s the breakdown, if you take the lump sum. That option gives you a 335 million dollar win. About 80.4 million will be taken for federal taxes, then you have to pay about 114-thousand more at tax time because it’s considered income. But wait! There’s more.
If your state has income tax, you get to shell out that cash. If you have local taxes, you’ll have to pony up that amount too. And last but not least, if you cross into another state to buy the ticket, you may owethatstate some coin as well.
At least you’ll have plenty left over if you spend it wisely.