The IRS takes $600 million of the $1 billion Powerball jackpot. Federal tax collectors will get rich, according to a July 20 Facebook post.
The conservative website For America congratulates the IRS for winning ~$600 million in the Powerball lottery last night.
One California ticket won the third-largest Powerball jackpot July 19. The Multi-State Lottery Association, which oversees Powerball, says the winner can receive $558.1 million or $1.08 billion over time.
“No, certainly not that I can come up with,” said Will McBride, vice president of federal tax policy at the Tax Foundation, an independent tax policy foundation.
Powerball says the upfront cash option is the amount needed in the prize pool on drawing day to finance the expected annuity reward.
If a winner takes cash, the IRS withholds 24%. The winner would receive $424 million after withholding $134 million.
Spring 2024 would bring additional taxes. Those winnings would likely be taxed at 37%, the highest rate for single earnings over $578,125 and joint filers over $693,750.