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New Year's tax and financial resolutions

2024 begins with lottery jackpot hopes…and tax on the winnings

Powerball and money stacks

Is getting rich one of your 2024 New Year resolutions? It could happen tonight if you have the winning Powerball numbers.

The Dec. 30, 2023, drawing didn't produce a winner of the multi-million dollar jackpot. So tonight's Powerball payout for a single winner is $810 million, or the more likely $408.9 million that's available in a single payment.

The possible payout already is the fifth largest Powerball jackpot. And it will grow a bit more today, as wishful millionaires buy tickets up until the numbers are chosen at 10:59 p.m. Eastern Time tonight.

UPDATE, Jan. 2, 2024: The New Year's Day Powerball drawing was life-changing for the person who bought the lone winning ticket in Grand Blanc, Michigan. Congrats to the winner of the $842.4 million jackpot, which has a one-time cash payment value of $425.2 million. And better luck next time for the rest of us!

Lottery taxes, too: If you're playing the national lottery, check out my 6 tax and financial tips for new lottery millionaires (which just happens to be the first tax tip of 2024).

Also, keep in mind that even though federal taxes will be withheld, that 24 percent rate won't be enough to satisfy Uncle Sam. You'll now be in the top 37 percent tax bracket.

Don't forget about your state taxes. Most jurisdictions will collect their slice of your millionaire pie, too.

And if you invest some of your new found riches, the earnings on that money is taxable. You'll need to cover that by paying estimated taxes.

Happy New Year: I know, you didn't plan to start 2024 with tax talk. But in my defense, you chose to click over to the ol' blog on New Year's Day (and I thank you!).

So I'll leave you now to spend the rest of the first day of 2024 tax-talk-free and to enjoy as you wish.

And good luck tonight when the Powerball numbers are picked.

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