Powerball jackpot reaches $1B: What a Florida winner should know
Powerball jackpot reaches $1B
There are one billion reasons to play the Powerball on Wednesday because that’s how much the jackpot is now worth. FOX 13’s Heather Healy reports.
TAMPA, Fla. - The estimated cash value for Wednesday's drawing is $433.1 million before taxes, which is the largest jackpot of the year. Winners can choose this lump sum or opt for 30 annuity payments spanning 29 years.
This is the 44th drawing since the last Powerball jackpot was won, which involved tickets purchased in Florida and Texas splitting a $20 million prize. The overall odds of winning the grand prize remain one in 292 million, while players have a one in 38 chance of winning a $4 prize.
Florida lottery tax rules
What we know:
While it is unclear who might win Wednesday night, we do know exactly how the state handles a Florida winner's information and taxes. The state of Florida keeps the names of winners hidden from the public for 90 days from the date of the claim for prizes of $250,000 or higher.
Additionally, the Florida Lottery automatically withholds 24% for federal taxes before a winner receives the money. Experts strongly advise lottery winners to remain anonymous if allowed and to learn to say no early to requests for money from long-lost family members and acquaintances.
Protecting newfound wealth
What you can do:
Financial experts recommend hiring a tax attorney and a CPA to navigate the complexities of a massive windfall.
Steve Cotton, president of Cotton Wealth Management Associates, emphasized the importance of building a strong advisory team.
"Working with a tax professional, an investment professional, and probably an estate planning attorney, if you get those three key professionals in your corner, and you sit down with them before you make any decisions, they can really help position you to protect you, achieve the goals of your family, and make sure that you end up being a good steward of this, and you don't. You don't just spend it away," Cotton said.
Powerball payout compared to athletes' salary
By the numbers:
Taking the $433.1 million lump sum would make a single winner richer than several high-profile athletes. For perspective, Bryce Harper's contract is $330 million, Trea Turner's is $300 million, Jalen Hurts' is $255 million, and Joel Embiid's is $187.8 million.
A single winner would surpass Super Bowl-winning quarterback Jalen Hurts by $178 million. Even NBA star LeBron James earns a base salary of roughly $3.8 million under his two-year contract with the Philadelphia 76ers for the upcoming season.
"It’ll be richer than Bryce Harper and Jalen Hurts, yeah, but not LeBron," resident Liz Murray said.
"What would you do with the ticket? I’m definitely going to all the Eagles games. You could buy a piece of the Eagles. You never know. Here it is," Dee, another resident, said.
Recent massive lottery wins
Dig deeper:
Florida recently saw lottery success when an $803 million Mega Millions ticket was sold at a Wawa in Bradenton at the end of July.
One local resident noted the excitement, saying, "That was wild... so we will try again."
The largest lottery jackpot in history occurred in 2022, when a single ticket in California won a $2.04 billion Powerball prize. Tickets for Wednesday's 10:59 p.m. drawing cost $2, with regular drawings held on Mondays, Wednesdays and Saturdays.
The Source: The information in this story was gathered from payout estimates and tax guidelines from the Florida Lottery, and an interview with Steve Cotton, president of Cotton Wealth Management Associates, as well as quotes from Bay Area residents.