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Tax Countdown: Yanira Alvarez to Forfeit $133.9M of Powerball Fortune

In a twist of fate, Yanira Alvarez, a billion-dollar lottery winner from California, stands on the verge of losing $133.9 million due to taxes. Alvarez, who won a staggering $1.08 billion in the Powerball, is the third Californian to achieve such a feat.

After opting for a lump sum over annuities, her winnings plummeted to $558.1 million pre-tax. The decision exposes her to substantial financial liabilities as the federal tax deadline looms on April 15.

As tax day approaches, Alvarez faces a crucial 24-hour window to finalize her tax responsibilities for the 2023 season. This period could significantly dent her take-home sum, underscoring the high stakes for Powerball champions.

Lottery winners like Alvarez often face tax brackets escalating to 37%, as noted by TaxAct. Although California spares her additional state taxes on lottery gains, the federal bite remains formidable.

This scenario mirrors Theodorus Struyck, another Californian who recently claimed a $1.7 billion Powerball win for a syndicate. Struyck could see his winnings reduced by over $620,000 in federal taxes, demonstrating the hefty financial implications of such windfalls.

Both winners’ experiences highlight the complexities of managing colossal lottery winnings and the critical role of expert financial guidance.

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