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It's a one in 292.2 million shot, but someone out there could win the Powerball lottery's $1 billion jackpot. So as people show up at gas stations, grocery stores, and convenience stores, we've got a look at how that money would pay out.
The $1 billion jackpot prize is for winners who take the full payout over roughly 30 annual payouts. Winners can also choose to take a lower cash prize, which the USAMega website listed as $497,300,000 as of Monday.
Most winners choose to take the cash. But those numbers are larger than what the winner will ultimately get.
Lottery payouts are subject to a 24% federal tax, and roughly 13% additional federal taxes. And that's before state taxes. In addition, the State of Arizona charges another 4.5% state tax on payments.
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Here's a look at how much is paid out after all that:
- Annuity: $19,537,045 paid per year
- After 30 payments: $586,111,350
- Cash: $290,957,545
It might not be the full billion, but this is still the fifth-largest jackpot in U.S. history. It's certainly nothing to sneeze at.
Winning tickets must be claimed in the state in which they were purchased. In Arizona, you have 180 days to claim the prize after the drawing.
VERSIÓN EN ESPAÑOL: ¿Cuánto recibirá si se gana los $1,000 millones del Powerball?
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