Powerball Jackpot Reaches $1.8 Billion Ahead of Saturday Drawing

SAN DIEGO, California — The Powerball jackpot has soared to an estimated $1.8 billion for the drawing set for Saturday night. This represents the second-largest prize in U.S. lottery history, behind only the $2.04 billion prize from November 2022, according to Powerball.

As interest grows, residents across San Diego are lining up at retailers to purchase tickets. Eric Williams, a local resident, bought $100 worth of tickets, stating, “You gotta pay big to win big,” and indicated he would choose the lump sum option if he wins.

Winners of this jackpot face two pretax options: a lump sum of approximately $826.4 million or an annuity worth about $1.80 billion, paid out over 30 years. However, the total winnings could shrink significantly due to taxes. The IRS imposes a mandatory 24% withholding on prizes exceeding $5,000, which means the lump sum would reduce to about $628 million after immediate federal tax withholding.

Tax law experts warn that winners will likely fall into higher tax brackets, leading to a substantial tax bill. John Chichester Jr., a certified financial planner based in Phoenix, explained, “The mandatory 24% withholding will only be the start; the grand prize winner is easily pushed into the 37% tax bracket for federal taxes, representing millions more owed come tax time.”

State taxes may also apply, adding further deductions from total winnings, which vary widely by jurisdiction. There are some states, such as California and Florida, that do not tax lottery winnings at all.

The next Powerball drawing is scheduled for 10:59 p.m. ET on Saturday, and the odds of winning the grand prize are about 1 in 292 million. Meanwhile, potential winners of the Mega Millions drawing on Friday night are vying for a separate jackpot currently estimated at $336 million, with similar odds of approximately 1 in 290 million.

As excitement builds, lottery players across the country are hoping for a lucky ticket that could change their lives forever.