One very lucky person could win the Powerball jackpot prize of $550 million this Wednesday

If you’re lucky enough to take home the lottery prize, you have two options: take a lump sum or an annuity with annual payments over 30 years. If you take the annuity, you’ll get one payment immediately, and then 29 additional annual payments. The amount of each payment increases 5 percent per year. The total of all 30 payments is equal to the jackpot amount.

If you were to take the cash option of $335 million, about $80.4 million will be withheld for federal taxes. Then you’d still need to pay roughly $114,140,000 when your tax return is due. Then, there are state taxes on the winning amount. For example, South Carolina has 7 percent state tax.