Remember Powerball players: If you win, you owe taxes

July 30, 2016

One lucky Powerball winner tonight could pocket $478 million if the jackpot is paid out over 39 years.

Powerball lottery tickets Aug 15 2012_croppedSome of my old Powerball tickets. And yes, I do have one for tonight's big drawing.

It's more likely, however, that any winner will take the immediate lump sum option. That's a cash prize of "just" $330.6 million.

That taxable lump sum amount also earns this week's By the Numbers honor.

A handful of folks have won relatively smaller amounts in the three months that the main Powerball jackpot has been growing. Just this last week, a Florida ticket matched enough numbers to win $2 million, while players in Ohio, Pennsylvania and Virginia hit $1 million jackpots.

Taxes apply to all winnings: All these lottery winners have one thing in common. They owe taxes on the payouts.

Long-time readers know that I occasionally waste a few bucks on lotteries. That's true this weekend. Hey, it's no $1.6 billion jackpot like three Powerball players split back in January, but tonight's amount is the fifth-largest in the game's history.

I would be more that happy to pay the U.S. Treasury my federal tax due on that sucker if my numbers come up tonight!

And just in case, I'm reviewing my blog post back then that offered 5 tax tips for lottery winners.

If you also have a ticket, check out the post before claiming your winnings. But actually, you won't have to worry about that. I'm sure my ticket is tonight's big winner!

On the outside chance — OK, the very real chance — that doesn't happen, I'll be back here blogging tomorrow. See all y'all then!

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment