Massachusetts Resident Walks Away with Two $500,000 Winnings from Powerball Drawings
In an unexpected turn of events, Fitchburg resident Paul Corcoran has become the latest big winner in the Massachusetts Powerball draw. However, his victory came with a twist and a lesson on the tax implications of lottery winnings.
On July 9th, the Powerball draw took place, and Corcoran, like many others, decided to participate. What set him apart was his unexpected purchase of two tickets. It seems that Corcoran initially thought his original ticket was for a previously declared draw, leading him to buy another one.
To his surprise, Corcoran discovered that he had won $1 million on two separate tickets with the same combinations. The Massachusetts Lottery announced his winnings after the draw, and they were subsequently confirmed two days later when Corcoran collected his prize at the lottery headquarters in Dorchester.
The Massachusetts Lottery also took the opportunity to share a photo of Corcoran with his check for $2 million. However, the joy was short-lived as Corcoran was informed about the tax implications of his winnings.
In the United States, Powerball winnings are subject to both federal and state income taxes. For amounts over $600, taxes are withheld as legally required. For winnings above $5,000, there is a 25% federal tax withholding on the prize for U.S. citizens or resident aliens with a Social Security number. In addition, Massachusetts imposes a 5% state tax on lottery winnings.
As a result, Corcoran is required to pay about $480,000 in federal withholding tax and approximately $100,000 in state tax on the lump sum. This means that after taxes, Corcoran's winnings will amount to approximately $1.4 million.
Corcoran is still deciding what to do with his winnings, but one thing is certain - he now has a firsthand understanding of the tax implications of winning the lottery. It serves as a reminder that while winning the lottery can bring immense joy, it also comes with its share of responsibilities, including paying taxes on the winnings.
[1] Massachusetts Department of Revenue, "Lottery Winnings,"
- Paul Corcoran's big win in the Powerball draw wasn't restricted to the casino-and-gambling realm, as his $2 million victory included winnings from lotteries.
- Unbeknownst to many who participate in lotteries, large winnings like Corcoran's are subject to both federal and state income taxes, potentially reducing the amount one receives post-taxes, providing a lesson for future big winners.
