How Taxes Affect a $189 Million Powerball Jackpot: What You Actually Take Home.

Winning $189 million sounds life-changing, but after taxes, your actual payout is much lower.

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The IRS withholds 24% immediately, reducing a lump sum to about $68-76M.

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The top tax bracket is 37%, so you owe another 13% at tax time (~$12-13M).

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– After all taxes, a lump sum winner in a high-tax state could end up with only $50-60M.

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Smart winners set up trusts or move to tax-free states before claiming.

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Gifting over $18,000 per person (2024 limit) can trigger 40% estate tax.

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Currently, Powerball offers slightly better odds of winning the jackpot, while Mega Millions provides marginally better chances of winning any prize.

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Choosing annuity payments means lower taxes upfront and a steady income.

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