Powerball winnings after taxes: How much the winner could actually take home in Texas

Monday night's Powerball jackpot has increased to an estimated $1.6 billion dollars, according to the Texas Lottery.

That's the largest U.S. lottery prize of all time, but if you beat the odds and match all six numbers, it doesn't mean you will become a billionaire.

Winners can choose to have their prize money paid out in 30 payments over 29 years, or in a lump sum.

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If there is a single winner of the $1.6 billion jackpot, those who pick the cash option will receive an estimated $782.4 million.

Then there are the taxes. The IRS immediately takes 24% of all lottery winnings over $5,000, dropping the total to approximately $594,624,000 for a winner choosing the lump sum.

The winner will also likely owe more when they file their 2022 federal income taxes.

Texas is one of 10 states that does not tax lottery winnings at the state level.

The next drawing will be held on Saturday, Nov. 5.