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Here’s How Much Of The $1.5bn Lotto Money You’d Actually Get After Tax

Written by the Shreddin.tv editorial team

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It wasn’t too long ago that all eyes were on the record-breaking $1.5 billion Powerball jackpot that had Americans scrambling to purchase a ticket. While three winners ended up splitting the big prize, none of them would’ve ended up taking $1.5 billion home anyways. After taxes, here’s the breakdown of what a single winner would’ve received:

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In order to have received the $1.5 billion, the single winner would’ve had to choose to take the money in 30 payments over 29 years, instead of opting for the tempting lump sum payout. Any winner who chose the lump sump would’ve immediately seen the prize amount drop 38%, to $930 million.

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And we’re just getting started! Thanks to the federal tax bill, lottery winnings are taxed as regular income. Melissa Labant, the director of tax advocacy for the American Institute of Certified Public Accountants, explains that this means the winnings are subjected to the highest federal tax rate.

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‘If they win the jackpot, they’re going to be subject to the highest federal tax rate of 39.6 percent,’ Labant explains. ‘It’s a lot more significant than folks expect. You’re not the type of consumer the U.S. government is looking to give a tax break to,’ she continued.

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And we’re just getting started! Thanks to the federal tax bill, lottery winnings are taxed as regular income. Melissa Labant, the director of tax advocacy for the American Institute of Certified Public Accountants, explains that this means the winnings are subjected to the highest federal tax rate.

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‘If they win the jackpot, they’re going to be subject to the highest federal tax rate of 39.6 percent,’ Labant explains. ‘It’s a lot more significant than folks expect. You’re not the type of consumer the U.S. government is looking to give a tax break to,’ she continued.

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Click ‘CONTINUE’ to learn more about the actual amount of winnings a single-winner would have received! Let us know what you think about the story in the comments below and then SHARE this post with your Facebook friends!

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