Updated

Updated · Yahoo! Voices · Aug 3

Kansas Lottery Reveals Lawrence QuikTrip Sold $50,000 Powerball Ticket as Jackpot Reaches $748 Million

Updated

Updated · Yahoo! Voices · Aug 3

Kansas Lottery Reveals Lawrence QuikTrip Sold $50,000 Powerball Ticket as Jackpot Reaches $748 Million

Q: With the jackpot hitting $748 million, what hidden tax traps await the lucky winner before they see a single dime?

The biggest trap is that the winner will not get anything close to $748 million, and even the initial tax taken out will almost certainly be too low. Powerball’s advertised $748 million is the 30-year annuity value. The cash option for the Aug. 3 drawing is about $325.1 million. Most winners choose that lump sum, but before the money is paid, federal law generally requires 24% withholding on prizes over $5,000. That would cut the cash option by roughly $78 million immediately. The catch is that 24% is only a prepayment, not the final bill. Lottery winnings are taxed as ordinary income, and a jackpot this large would push most winners into the top federal bracket, currently 37%. That means the winner could still owe millions more when filing a tax return, unless they set aside enough or make estimated payments. This “withholding gap” is one of the most common and costly surprises. State taxes can take another bite. In some states, lottery winnings are not taxed, but in others the rate can exceed 8% or even 10%. Where the ticket was bought, where the winner lives, and whether local taxes apply can all affect the final payout. The annuity option has its own tax wrinkle: each annual payment is taxed in the year received, so the winner spreads the tax burden over time but remains exposed to future tax-law changes. Experts generally advise winners to secure the ticket, stay quiet, and consult a tax attorney, CPA and financial adviser before claiming.

Q: A Kansas local just won $50,000, but how much of that prize will the IRS quietly claim before payout?

The IRS will automatically withhold $12,000 from a $50,000 Powerball prize before payout, because federal law requires 24% withholding on lottery winnings over $5,000. That means the winner would likely receive about $38,000 upfront before any state withholding or later tax adjustments. In Kansas, lottery winnings are also subject to state income tax. Based on the state rate cited in the background material, Kansas could claim roughly 5.7%, or about $2,850, if withheld at payment or owed later at filing. So, using those figures, the winner’s immediate take-home could be around $35,150 after federal and Kansas taxes combined. The exact check amount depends on how the Kansas Lottery handles state withholding and the winner’s tax paperwork. It is important to note that the 24% federal withholding is not necessarily the winner’s final federal tax bill. Lottery winnings are taxed as ordinary income, so if the person’s total annual income puts them in a higher bracket, they could owe more to the IRS when filing their tax return. If they are in a lower effective bracket, some of that withholding could be refunded. For this $50,000 Kansas win, the clearest answer to how much the IRS will “quietly claim” before payout is $12,000.

1 articles · Updated · Yahoo! Voices · Aug 3

$50,000 winning Powerball ticket from the July 27 drawing was sold at QuikTrip, 1020 E. 23rd St. in Lawrence, after the prize was claimed.
The ticket matched four white balls and the Powerball number; the drawn numbers were 6, 26, 46, 58 and 65, with Powerball 25.
$748 million is the estimated jackpot for the Aug. 3 drawing, with a cash value of about $325.1 million, after 40 drawings since the last grand-prize win on May 2.
That total is the largest Powerball jackpot since a $1.817 billion prize won in Arkansas on Dec. 24, 2025, and is nearing the game's top-10 all-time jackpots.

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Yahoo! Voices6d ago

Kansas Lottery: $50,000 Powerball Ticket Sold at Lawrence QuikTrip

With the jackpot hitting $748 million, what hidden tax traps await the lucky winner before they see a single dime?

As the Powerball nears historic records, why do millions still chase a dream with impossible 1 in 292 million odds?

A Kansas local just won $50,000, but how much of that prize will the IRS quietly claim before payout?

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Yahoo! Voices6d ago

Kansas Lottery: $50,000 Powerball Ticket Sold at Lawrence QuikTrip

Kansas Lottery Reveals Lawrence QuikTrip Sold $50,000 Powerball Ticket as Jackpot Reaches $748 Million

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