The Powerball jackpot has reached an estimated $1.2 billion before the upcoming Wednesday night's drawing, making it one of the largest in Powerball history.
The jackpot has been growing since mid-July when it hit another record at $1.08 billion, which was won by a ticket sold in California.
Despite its immense size, the current jackpot ranks as the fourth-largest in Powerball history and the ninth-largest in U.S. lottery draw game prizes.
If a player wins the Powerball jackpot, they will not receive the full $1.04 billion due to payout options.
Winners can choose between annuitized payments or a lump sum. The annuity value is $1.2 billion, while the cash value is approximately $551.7 million.
Regardless of the payout option selected, taxes will significantly reduce the winnings. Federal income taxes will withhold 25%, and state taxes will further decrease the amount.
The final payout also depends on whether the jackpot is shared with other winners. Many Powerball jackpots have been split when multiple tickets matched the winning numbers.
Draw Schedule: Powerball tickets are sold in 45 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Drawings occur on Mondays, Wednesdays, and Saturdays,