If you hit the Powerball in Oklahoma, how much goes to taxes?
OKLAHOMA CITY (KFOR) — The Powerball jackpot has soared to $1.73 billion, but if you win in Oklahoma your payout will be much smaller.
“Oklahoma is a piggyback state, so the biggest piece of the pie that gets taken is by the federal government. So what happens is it just adds on to your existing income,” said Paul Hood, OSCPA.
Experts said despite its record size, you aren’t guaranteed billions if you’re lucky enough to win.
“The federal government takes 24% of that right off the top. You don’t get a $1.7 billion check,” said Hood.
Oklahoma taxes will shrink your pay out by millions of dollars.
Losing streak continues: Powerball jackpot climbs to $1.73 billion
“Once you have met that 24% threshold, if you exercise the cash option, you’re going to be in the highest tax bracket that we have. And so, you’re going to owe more taxes on that on those winnings later on,” said David Wells, Lottery Attorney.
News 4 asked over a dozen people if they were planning to buy a lottery ticket and only got one person who said the large amount was too good to not give it a try.
“In 34 years, I never bought a Powerball before today,” said James Holt, a ticket buyer.
If you’re ready to test your luck anyways, experts recommend keeping the excitement to yourself.
“If you win that kind of money, it probably isn’t a good idea to publicize it to the world because there’s some people out there who don’t have your best interests at heart or don’t have your family’s best interests at heart,” added Walls.
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