New Delhi, Sept. 7 -- The Powerball jackpot reached an estimated $1.8 billion before Saturday night's drawing, marking the second-largest prize in US lottery history. Winners can choose between a lump sum payout of $826.4 million or an annuity worth $1.80 billion.

The immediate payout includes 29 yearly payments that increase by 5% annually. However, taxes may significantly reduce the final amount.

Notably, the Powerball jackpot winner will face a large upfront federal tax withholding. According to IRS, a mandatory 24% withholding is required for prizes over $5,000.

Published by HT Digital Content Services with permission from MINT....