Sept. 3 (UPI) -- The Powerball jackpot for Wednesday night's drawing is estimated at a near-record $1.4 billion. How much of that a winner would actually take home depends on where they bought the ticket and whether they opt for a lump sum.
The drawing could result in the fourth-largest Powerball payout in history, and the sixth largest jackpot among all U.S. lottery drawings.
Powerball winners are faced with a choice of taking their winnings as an annuity -- paid in installments over a period of 30 years -- or a lump sum. Choosing the lump sum, which lottery officials say is the more popular option, automatically reduces Wednesday's prize to its "cash value" of $634.3 million.
The "cash value" of $634.3 million would then immediately be reduced further by a 24% federal tax withholding, bringing the take-home total to about $482 million. That number would be further reduced by a state tax withholding, depending on the location where the ticket was purchased.
An additional amount would be due to the federal government at tax time next year.
