· Updated January 16, 2025 12:05 AM · 3 min read read
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Ka-ching! Powerball's get-rich-quick mania seized America this week. And the biggest winner of the multistate numbers game was — drumroll, please — Uncle Sam.
Powerball is a government-sponsored gambling racket in 44 states, plus Washington, D.C., Puerto Rico and the Virgin Islands. The feds automatically skim 25 percent off the top of a lump-sum cash award. Additional state withholding taxes vary depending on residency status. Mega-winners are taxed at the highest federal income tax bracket (n
Ka-ching! Powerball's get-rich-quick mania seized America this week. And the biggest winner of the multistate numbers game was — drumroll, please — Uncle Sam.
Powerball is a government-sponsored gambling racket in 44 states, plus Washington, D.C., Puerto Rico and the Virgin Islands. The feds automatically skim 25 percent off the top of a lump-sum cash award. Additional state withholding taxes vary depending on residency status. Mega-winners are taxed at the highest federal income tax bracket (n…