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Powerball ticket sold in Georgia wins jackpot of $478 million – which the winner takes home after taxes

Topline

A Georgia ticket buyer won the $478 million Powerball jackpot on Wednesday – the sixth-largest lottery prize of the year so far – although he will take home a much smaller amount after paying his taxes.

Important facts

Powerball announced that a single ticket sold in Georgia matched all six numbers drawn Wednesday night – 2, 15, 27, 29, 39 and the red Powerball 20.

The winner must now decide whether to receive the full $478 million, spread over 30 annual installments, or a lump sum prize of $230.6 million – usually the most popular choice among winners.

The cash prize will decrease to $175.26 million after deducting a mandatory 24% federal tax withholding.

Depending on their taxable income, the winner could face a marginal tax rate of up to 37%, which would further reduce their gain to $145.28 million.

The state of Georgia also imposes a 5.75% tax on lottery winnings, which in this case would reduce the winnings to about $132 million.

If the winner chooses to pay in installments, their annual payments would drop from $15.93 million to about $10 million if the federal marginal interest rate of 37% is applied.

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Big number

1 in 292.2 million. These are the astronomical odds that Wednesday night's winner had to overcome to win the Powerball jackpot. The odds of winning the Mega Millions jackpot are even worse, at 1 in 302.6 million.

Important background

The biggest lottery jackpot of the year so far is the $1.3 billion Powerball prize won by an Oregon ticket holder. The winner was identified as Cheng “Charlie” Saephan, a Portland resident undergoing chemotherapy for cancer. While accepting his prize check, Saephan said he would use the winnings to provide for his family and find “a good doctor for myself.” The biggest Mega Millions prize of the year so far – $1.13 billion in prize money – went to a ticket buyer from New Jersey.

Further reading

Mega Millions ticket holder in Texas wins $800 million jackpot – that's how much he'll take home after taxes (Forbes)

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