Why Powerball jackpot winner won't take home $700M

Powerball jackpot hits $700M

Colo. Springs, CO - At a staggering $700 million, people across the country will tune in to see if their ticket is the winner of the second largest Powerball grand prize in history.

What comes as a shock to most is if you do win the Powerball, experts say you won’t be receiving $700 million. The majority of Colorado Springs residents KRDO spoke to say they would take the lump sum of the prize. Meaning they would get their millions right away, but the Lottery Board would automatically take out $256.7 million leaving you with $443 million.

While that is still a lot of cash, local certified public accountant Linda Buckley says the winner would actually take home even less than that in Colorado. “They would take home roughly just a little bit over 247 million,” says Buckley. The reason being federal and state tax still needs to be applied to the $443 million, “The federal rate is 39.6 percent and the state rate is 4.6 percent so when you combine the two together it’s close to about 45 percent.” Leaving you with less than half of the $700 million.

For those who would choose the annual payments for 29 years, they would end up receiving closer to $700 million even with state and federal taxes.

However, to make things more difficult for lottery lovers, the board actually decreased the chances of winning significantly. According to the Colorado Lottery website, the odds of winning the Powerball is one to 292 million. To put that into perspective, you have a better chance of becoming the President of the United States or being hit by a meteor.

The winning numbers will be released Wednesday night.

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