After nobody was able to match all six numbers on Wednesday night, the Powerball lottery jackpot has continued to increase and is currently ranked third among all Powerball jackpots. Staggering $1.4 Billion US is up for grabs. Do you have what it takes to win this faintingly high amount of money?
If a winner is determined in the following draw, they can opt for a lump sum payment of $643.7 million or a $1.4 billion payoff split over 30 annual instalments, which is typically the more popular option. Regardless what the winner takes, this sum of money is a big number for entire nations for individuals a chance to instantly faint from shock.
This Powerball prize is currently among the top 10 payouts in lottery history and is the third-highest jackpot in the game’s history. Additionally, this is the fourth lottery jackpot in 2023 to exceed $1 billion.
READ MORE: What Would You Do With $785 Mio. US?
The most recent $1.08 billion Powerball jackpot hit occurred in July.
Do you want to play Powerball but are unsure of how it operates? Here are some important details.
- To play Powerball, you first select five white ball numbers. These five numbers will be between one and 69. Then, pick one “Powerball,” or red ball, number. This number will be between one and 26.
- For an extra dollar, you may choose to “power play,” which multiplies all non-grand prize winnings by a factor of 2, 3, 4, 5 or 10.
- If you match at least one number in the Powerball drawing, you win a prize.
Not all the money advertised can be won in the Powerball lottery. After a 24% statutory federal tax withholding, the lump sum payment will be reduced to $489.2 million. If you ask me, I’ll take it.
The winner may be subject to a federal marginal rate of up to 37% depending on their taxable income for the year, which would further reduce the prize to $405.5 million. OK, I am still interested!
If the 37% federal marginal rate is used, the winner’s annual payments under the instalment plan, which are currently around $46.66 million, might drop to $29.4 million. Not fair but I’ll still take it!
The amount of additional taxes the winner will pay will depend on their state of residency. For example, New York taxes lottery wins at a rate of 10.9%, whereas Texas, Florida, and California don’t tax them at all. I am still interested!
But how about Canada and Canadians playing PoweBall?
It’s not surprising that more and more Canadians are choosing to play U.S. lotteries due to the huge jackpots that are frequently significantly greater than those provided by Canadian lotteries, such as the newest draw $1.4 billion Powerball lottery win.
Playing and collecting Powerball Lottery jackpot wins are both legal in Canada. The same is true for many other U.S. lotteries, but to be safe, it is recommended to confirm with the state lottery organizations that manage these lotteries first.
Bringing Your Lottery Ticket Outside of the United States: Among Canadian would-be Powerball participants, a mysterious U.S. legislation that forbids entering the country with a lottery ticket has recently drawn a lot of attention.
In theory, Canadians who buy Powerball tickets in the United States, bring them home to Canada, and then attempt to re-enter the United States with their tickets may be breaking the law and risk having their tickets seized, which has actually happened, though the lottery tickets were eventually returned to the buyer.
The law reads as follows: “all persons are prohibited from importing into the United States from any foreign country any … lottery ticket, or any printed paper that may be used as a lottery ticket, or any advertisement of any lottery.”
However, Canadians who bring their U.S. lottery tickets back to Canada and are fortunate enough to match the winning Powerball numbers might find some solace in a recent statement made on this topic by a Washington State lottery official. The state lottery is eager to cooperate with winners who have problems crossing the border to make sure they receive their prizes, the official said.
Good news for Canadians indeed but how about the taxes?
Canadians who win the Powerball lottery (or any other U.S. lottery) are required to pay federal U.S. taxes on 30% of their winnings. whereas some states tax lottery earnings as well, some don’t (for instance, Washington State doesn’t tax lottery winnings whereas New York State levies an 8.82% tax). Lottery wins are excluded from taxation under section 40(2)(f) of the Income Tax Act of Canada, therefore Canadians do not have to pay taxes on their winnings from American lotteries in Canada.
All right! Yet, US border is not so close! No worries, Canadians can purchase Powerball ticket even online!
God luck and may I win the $1.4 billion US this Saturday!