2.04 Billion Dollars Lottery Winner Could Only Get Almost 628 Million Dollars After Taxes
Imagine winning the biggest lottery jackpot in history, only to lose roughly a third of it to taxes. The same happened with a lottery winner. 2.04 billion dollars lottery winner could only get almost 628 million dollars after taxes.
Author:Morgan MaverickReviewer:Raven NoirNov 11, 20220 Shares320 Views
Imagine winning the biggest lottery jackpot in history, only to lose roughly a third of it to taxes. The same happened with a lottery winner. 2.04 billion dollars lottery winner could only get almost 628 million dollars after taxes.
When did this happen? This happened in November 2022.
The very fortunate winner of the mind-blowing $2.04 billion (yes, with a B) in prize money must deal with this hard reality. That 2.04 billion dollars lottery winner could only get almost 628 million dollars after taxes.
Despite the fact that the person is unquestionably considerably wealthier now than they were before winning the lottery, Forbeshas revealed how much money they stand to lose in taxes.
And that is almost as heartbreaking as the victory itself. How much of the prize will therefore be lost to taxes? Well, it can differ depending on a few critical factors.
It depends on the winner's residence (in this example, California) and the manner in which they actually get the prize money. According to Forbes, if the winner chooses one option, they will only be able to claim around half of the prize.
Wood said:
If the winner picks the lump sum, that $2.04 billion drops to $997.6 million. Of course that is before taxes. To get the full $2.04 billion instead, the winner would have to pick the 30 annual payments. That works out to about $68 million a year, again, before taxes.
From the start, the winner loses 24 per cent federal tax withholding that goes off the top to the Internal Revenue Service (IRS). On the $2.04 billion win, the cash election is really $997.6 million.
Tax withholding of 24 per cent amounts to $239.4 million, leaving $758.2 million. But the IRS isn’t done yet. Although only 24 per cent is withheld and sent directly to the IRS, our lucky winner will owe a lot more in April of 2023.
Since federal income tax rates go up to 37 per cent, and the winner is in the top 37 per cent bracket, another 13 per cent - $129.7 million more in taxes - is due on April 15.
Wood says that lottery winners who weren't ready can sometimes have trouble paying their taxes a year or so after their big win. He said that if you add up the 24% withholding tax and the 13% tax that will need to be paid in mid-April of next year, you can get a federal tax bill of $369.1 million.
Conclusion
The winning Powerball ticket, which entitles the holder to a staggering $2.04 billion jackpot, was purchased at Joe's Service Center in Altadena, California. 10, 33, 41, 47, and 56 were the winning numbers, and 10 was the Powerball.
But, unfortunately, the winner was not very lucky as he has to lose a significant amount of the lottery to taxes. 2.04 billion dollars lottery winner could only get almost 628 million dollars after taxes.
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Morgan Maverick
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Morgan Maverick is an unorthodox news reporter driven by an insatiable hunger for the truth. Fearless and unconventional, he uncovers hidden narratives that lie beneath the surface, transforming each news piece into a masterpiece of gritty authenticity. With a dedication that goes beyond the boundaries of conventional journalism, Morgan fearlessly explores the fringes of society, giving voice to the marginalized and shedding light on the darkest corners.
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Raven Noir
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Raven Noir is a captivating and enigmatic news reporter who unravels mysteries with a relentless pursuit of truth. Possessing an insatiable curiosity and an astute mind, Raven delves into the depths of complex stories, unearthing secrets that lie beneath the surface. With a masterful grasp of deduction and observation, Raven stands as a beacon of fearless investigation.
In the realm of journalism, Raven is known for his enigmatic presence, drawing people in with an aura of intrigue. Driven by an unwavering passion for unveiling the truth, Raven Noir continues to shed light on the darkest corners of society. Through captivating storytelling and unwavering determination, he challenges conventions and uncovers enigmatic secrets that lie just beyond the surface.
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