After 21 weeks with no jackpot winners in the game, Saturday night's drawing yielded two tickets that beat the odds and matched all six winning numbers (8, 12, 13, 19 and 27, with a Powerball of 4). The final jackpot came in at $687.8 million, which will be split between the winners — one in Iowa and one in New York. It also comes on the heels of a single ticket winning the $1.537 billion Mega Millions jackpot last week.
The haul marks the third-largest prize in the game's history and the fourth-largest U. For that game's next drawing on Tuesday night, the amount up for grabs seems paltry in comparison: $45 million.
Powerball's jackpot also has reset to $40 million for Wednesday night's drawing.
Of course, the two winners splitting the $687.8 million Powerball jackpot won't end up with the advertised amount.
Whether they take their haul as a lump sum or as an annuity spread out over three decades, federal and state taxes will eat up a big chunk of their windfall.
"Winners are surprised by how much is withheld in taxes from the initial payment, and then how much more is owed with they file their taxes the following year," said Jason Kurland, a partner at Rivkin Radler, a law firm in Uniondale, New York.
"All of the numbers involved in these huge jackpots are staggering, and the taxes are no exception," said Kurland, who helps big lottery winners navigate their windfall.
If the winners go with the immediate lump sum payment, they would each start with $198.1 million (versus the $343.9 million they'd each get if they were to choose the annuity).
The federal government will shave off 24 percent right off the bat — and more will be due at tax time.
Winners can expect to owe the difference between that withholding and the top federal tax rate of 37 percent (applied to adjusted gross incomes of $500,000 or more).
After that full rate is applied, the winner's take would be reduced by $73.3 million to $124.8. In this case, Iowa will withhold 5 percent of the win.
However, its top income tax rate of 8.98 percent (8.53 percent as of 2019) will mean more owed at tax time.