ODESSA, Texas (KMID/KPEJ) – The cash option for Wednesday’s 1.2 billion dollar Powerball jackpot is estimated to be 596.7 million dollars. But Steve Hurt, the operations manager at Odessa’s Raymond James Financial Services explains that no matter who claims that prize, the federal government is a guaranteed winner.

“Uncle Sam’s going to take 25% right off the top. So you subtract that from the cash value option but you have to keep in mind that (the prize money) is going to put you in the highest tax bracket which is 37%, so you’re going to owe more money when you file your taxes for 2022,” said Hurt.

Hurt also says that means the winner will have to pay an additional 12% of their big prize to the federal government come tax time, but one of the nice things about living in the Lone Star State is the lack of a state income tax. That means Texas won’t be coming for the prize money if the winner lives here.