If there's a winner in Wednesday night's drawing, the IRS will get tens of millions of dollars.
If someone hits the $448 million jackpot in Wednesday night's Powerball drawing, Uncle Sam will be waiting in the wings with both palms out.
"Winners are surprised by how much is withheld in taxes from the initial payment, and then how much more is owed when they file their taxes the following year," said Jason Kurland, a partner at Rivkin Radler, a law firm in Uniondale, New York.What you need to know before you invest in Lyft's IPO"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.
Of course, at some point, there will be a jackpot winner. And whether the person takes their prize as an annuity spread out over three decades or as an immediate reduced lump sum, lottery officials are required to withhold 24 percent for federal taxes.For Wednesday night's drawing, the cash option — which most winners go with — is $271.7 million. The 24 percent withholding would reduce that by $65.2 million.
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