The Powerball jackpot has climbed to an estimated $298 million for Saturday night’s drawing after no ticket matched all six winning numbers in Wednesday’s drawing. If a player wins the jackpot, they can choose between the advertised $298 million annuity, paid through annual installments over 30 years, or a $126.6 million lump-sum cash option. However, neither figure represents the amount the winner would ultimately take home. Powerball prizes are subject to taxes, meaning the winner could owe federal income taxes as well as state or local taxes, depending on where the winning ticket was purchased. The final amount received would therefore be lower than the advertised jackpot or cash value after applicable taxes are deducted.
