In the situation when the winner resides in a different state than the one where the winnings were registered, additional state taxes may be added.

We assume single state residency only and do not consider non-state resident tax.

Tax estimates are based on jackpot income only and do not include any other taxes you may owe.

The highest federal tax bracket of 37% is assumed for these examples because all Powerball jackpot winners will fall into this category.

In some states, the lottery also withholds a portion of annual payments for state taxes.

When you file your taxes, you will be responsible for the difference between that withholding and what you owe to the IRS.

The lottery automatically withholds 24% of each payment for federal taxes.

For clarity, we assumed that payments 1 and 2 are made in separate tax years.

Each annual annuity payment increases by 5% from the previous year.

Robert Salvato Jr., a 60-year-old electrician, bought 40 Powerball tickets at a hardware store in Billerica, Massachusetts. That didn’t bother those eager to plunk down their money on Wednesday for a long-shot chance at instant wealth. And wins in recent months have been few and far between. Powerball’s terrible odds of 1 in 292.2 million are designed to generate big jackpots, with prizes becoming ever larger as they repeatedly roll over when no one wins. The only top prize that was ever bigger was the $2.04 billion Powerball won by a player in California last November. Final ticket sales pushed the jackpot beyond its earlier advertised estimate of $1.73 billion for Wednesday night’s drawing.

That streak trails the record of 41 draws set in 20. The jackpot is the world’s second-largest lottery prize after rolling over for 36 consecutive drawings.

Before someone won the giant prize, there had been 35 consecutive drawings without a big winner, stretching back to July 19 when a player in California matched all six numbers and won $1.08 billion.

Current powerball jackpot in louisiana