TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Monday, March 25, 2013

Tax Consequences of Winning the $338 Million Powerball Jackpot

PowerBallForbes:  How Much Tax Will You Owe on a [$338] Million Powerball Jackpot? A Lot More Than In 2012, by Janet Novack:

The good news: You are about to win a [$338] million Powerball Jackpot. The bad news: You’ll owe millions more in tax than you would have had you won the same pot in 2012. ... The top combined federal and state rate for a New Jersey resident on lottery winnings would be 46.2%, which translates into a tax bill topping $97 million–$11 million more than it would have been in 2012— if Saturday’s winner elects to take the $211 million lump [sum].

(Hat Tip: Greg McNeal.)

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Wait, I'm confused. Does this mean the recent tax increases means you pay more taxes this year as compared to last year? Glad the article cleared that up.

Posted by: the real anon | Mar 26, 2013 6:17:28 AM