Powerball ticket sales across California and the nation have helped push the jackpot to an astronomical $1.5 billion for Wednesday night’s drawing in Tallahassee, Fla., California Lottery officials reported Tuesday.
The winner will have the option of taking a lump sum amount of $930 million, or receiving the entire $1.5 billion in 30 annual installments.
The payments range from $22.6 million up front, to a staggering $93 million in final year No. 30.
Historically, most people who win large jackpots take the lump sum; however, these huge annual payments could change some minds.
If a California Lottery retailer should sell the winning ticket that business would win big as well. It would receive a $1 million retailer bonus check.
Since the retailer bonus is from a separate fund, retailers do not have to wait for the winner to come forward to get paid. And the national publicity the winning retailer would receive as a lucky spot for lottery products is priceless.
As for taxes, the IRS requires the California Lottery to withhold 25 percent in federal taxes on the $1.5 billion. The winner would be required to pay any additional federal taxes owed on the win, based on their tax bracket.
Officials recommend winners advice from a tax professional and get started by reading the Winner’s Handbook, which “explains everything you need to know if you win a large jackpot.” Winners are not required to pay California state tax.
Powerball sales continue to be off the charts. California continues to lead the country in sales.
On Tuesday, sales started off even better than Monday. During the 11 a.m. hour, sales were $7.621 million compared to the same time on Monday morning ($4.646 million).
Since the last time the Powerball jackpot rolled on Nov. 7, 2015, California Lottery players have purchased more than $251.2 million (and counting) in Powerball tickets.
To put that figure into perspective, California sold $372 million in Powerball tickets for the entire 2014-15 fiscal year.
Remember, as this jackpot soars to historic heights, the California Lottery would like to remind players that gambling should be fun.
Borrowing money to play, spending above a person’s budget or using money intended for other purposes can ultimately lead to significant problems for players and their families.
If a player recognizes that they have a gambling problem or if someone knows of someone who may have a problem, the Lottery recommends calling the Problem Gambling Help Line at 1-800-GAMBLER.
Powerball jackpot jumps to a record $1.5 billion
- Lake County News reports
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