The Powerball jackpot is reaching new heights as the uber-elusive win continues to evade lottery players.
The next drawing is Wednesday, and the current estimated jackpot is $835 million with a cash value option estimated to be $390.4 million.
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One Texas resident got lucky last week with a top-tier prize when a Lytle resident claimed a Powerball ticket worth $2 million for the drawing on Sept. 20 that matched all five white ball numbers but not the red Powerball number.
But what would happen if you won the jackpot? In short, it depends on the state.
The federal tax withholding rate is 24% for lottery winnings, less the wager, for prizes greater than $5,000, according to the Texas Lottery Commission.
However, Texas is one of less than a dozen states that doesn’t tax lottery winnings at a state level, which means Texas winners get to take home more of the cash.
The winnings for a Texas resident would be taxed as income, and if you’ve hit the jackpot you can definitely expect to be in the top-tier tax bracket, which is currently at 37%.
Keep in mind, though, that the odds of winning a Powerball jackpot are one in nearly 300 million, so your chances of actually getting that big payday are nearly zilch.
Prizes less than or equal to $5,000,000, and that are not paid by annuities, may be claimed at Texas Lottery claim centers in Austin, Dallas, Fort Worth, Houston and San Antonio, according to TexasLottery.com.
Prizes greater than $5,000,000, all Lotto Texas, Powerball and Mega Millions jackpot prizes and any prizes paid by annuity must be processed at Texas Lottery headquarters in Austin. If you’re lucky enough to be in that category you need to call 800-375-6886 to complete an initial inquiry on your ticket and schedule an appointment to complete the processing of your claim.
In reference to Wednesday’s Powerball drawing — any player who matches all five numbers for the Power Play will win $2 million regardless of the Power Play number selected and all other non-grand prizes will be multiplied by the Power Play number selected.
Powerball Grand Prizes currently start at $20 million and roll until the jackpot is won.
Drawings are broadcast each Monday, Wednesday and Saturday at 10:12 p.m.