How long does it take to get your money when you win the Powerball?
Winnings can be received all at once, but taking the money over a 29-year timeframe entitles the winner to a higher percentage of the winnings.
In total, 44 states plus Washington DC, the US Virgin Islands and Puerto Rico are involved in the Powerball and history has suggested that some areas tend to fare better than other. Indiana is responsible for the most with 39 Powerball winners, more than 10% of all jackpots claimed.
In September, a lucky Powerball player in California scooped the seventh-largest lottery win in United States history, picking up nearly $700 million dollars after matching all six numbers. However, if all this money is claimed at once, then it is subject to big taxes and the full figure cannot be claimed. Spacing out payments over a longer-term means a less up front win, but more money overall.
How much can be won and in what timeframe?
Taking the lump sum will mean you will be in the highest band of tax income. As of 2020, this means you'll likely owe the IRS at least 37% in taxes. However, the option of an annuity plan means the winnings are spread out over 30 years, meaning you may not be in the highest tax bracket each year, depending on the size of your prize and your other income.
All winnings over $5,000 are subject to tax withholding by lottery agencies at the rate of 25%. For example, if you won a $1.5 billion jackpot then you would receive $930 million if you took a lump sum. The money you haven't yet received is invested, taking you up to the $1.5 billion jackpot.
What chance is there of winning?
The odds of winning the Powerball jackpot are 1 in 292,201,338, so you’re more likely to win at a slot machine than the grand prize.
To put that into context, there is a 1 in 500,000 chance of being struck by lightning, according to the CDC. That means you will be struck by lightning a whopping 584 times before you win the lottery. There is a much greater chance of being born with an extra toe or finger.