SACRAMENTO - There was no winning ticket over the weekend, so the Powerball jackpot swelled from $317 million to $400 million with a cash option of $223.6 million.
In early August, three winning Powerball tickets were sold for a jackpot of $448 million. That was the fourth largest U.S. lottery jackpot ever. One of the winning tickets came from Minnesota, and the other two were sold in New Jersey.
One of those winning New Jersey tickets was sold to a group of Ocean County employees, dubbed the "Ocean's 16". All 16 employees worked at a vehicle maintenance facility. They will each pocket about $3.8 million.
This week, Forbes Magazine published an article offering advice on how to avoid being taxed out of a lottery jackpot. They advise to avoid entering into a deal to split winnings with friends or relatives. Such arrangements can lead to expensive litigation, and extra taxes.
According to Forbes, it is best to plan before playing, plan on keeping a reserve for taxes, and allow for additional taxes if giving money to charity or family.
In one case, a generous Canadian couple won $11.2 million and gave 98 percent of it away to charity. Fortunately for them, lottery winnings are not taxed in Canada, but the tax picture in the U.S. would have been more grim. Even if the winner gives all the winnings to charity, they may still end up with a big tax bill.