Wednesday’s Powerball jackpot drawing is worth $1.2 billion — the fourth-largest in Powerball jackpot history. The cash option is $596.7 million — the fifth-largest cash option ever offered.
The drawing is scheduled for Wednesday at 10 p.m.
There are two options when you win the lottery: Get a lump sum of your winnings or 30 annual payments over 29 years.
If you take the lump sum option, there will be a federal tax of 24% on your Powerball jackpot winnings — about $143.2 million. You’d also owe more at tax time, another 13% or about $77.5 million, according to the USA Mega website.
Nebraska also has a 5% state tax withholding — about $29.8 million — plus additional state taxes due, taking your total net payout on the lump sum to about $335.1 million.
If you take the annuity option, you would receive 30 average annual payments of about $40 million — before taxes. The 24% tax would be about $9.6 million each year and additional federal taxes of about $5.1 million, bringing the subtotal to about $25.2 million.
After Nebraska’s state taxes, according to the USA Mega website, your average net per year would be about $22.5 million. After 30 payments, your total would be about $675 million.
The largest Powerball jackpot won in Nebraska occurred in February 2006 when a group of eight co-workers at the ConAgra Foods ham and corned beef plant in Lincoln split a $365 million Powerball jackpot.