Record Powerball Lottery Is $1.9 Billion – How Much Do You Get To Keep?
We like to joke on the air about winning a big jackpot and you will never hear from or see us again, and while that may or may not be true, can you imagine what you would do with an almost $2 Billion lottery payout? It boggles the mind. Let's see how much you would really get to take home?
Most of us choose the cash option, probably because we fear the annuity payout may dry up someday because it's run by the government. Let's be real here, that's a legitimate fear. So, let's take a look at the cash option:
Figured at 50% of the total jackpot, the cash option sits about $950 million.
After the IRS gets the part they think they deserve, married filing jointly, you would be left with about $598 million. I know that seems crazy out of an almost $2 billion award but that's the way it works and there's nothing that can be done to change it at this point. So deal with it.
I'm pretty sure that most of us could survive on $598 million for the rest of our lives.
What About Payments?
If you're young, you might want to look seriously at the annuity payout though. Your first year would be an $18,000,000 take-home after taxes, and you would get a big fat check that gradually increases every year for the next 29 years after that. Your final check on year 30 would be about $74,000,000 take home. Not too shabby, if all goes as planned.
The difference between the two over that same period? $600,000,000
You would take home $598,000,000 immediately or $1,198,000,000 over 30 years. The difference between the two? $600,000,000
Something to think about, because that decision is made when you purchase your ticket.
Odds of Winning?
The odds are you are not going to win. I have the same odds as you do and yes, I am planning on donating a little bit to someone and their newfound wealth in hopes that it just might be me.
The odds are 1 in 292.2 million.
You probably have better odds of striking a gold vein in your backyard, he said to himself as he walked into the convenience store to purchase three more tickets...
The figures above came from the Omni Lottery Tax Calculator and were adjusted to closely match the numbers quoted from the Powerball website. The Federal taxes were figured on Married Filing Jointly and I live in Texas. Click on the link if you would like to do your own state and filing situation.