Wisconsin Powerball Winner Is ‘Paying It Forward’
A 24-year-old Powerball winner from Wisconsin didn't forget where he came from. And, on Mother's Day, he decided to go out and try to share the wealth a little bit.
Manuel Franco, the winner of a $768 million Powerball jackpot happened to be visiting a Target store in Norridge, Illinois on Mother's Day when he decided to spread some of his new-found cash around (Before winning a jackpot worth $768 million in March, Franco worked at a Target in Milwaukee.)
When he encountered a mother of two, Nicole Domitro, in the diaper aisle, he said "I'm Manuel Franco, I was the Powerball winner in Milwaukee, and I wanted to give you this gift of $200 for Target, a Target gift card."
Nicole said that Franco was very nice, but she started asking him a bunch of questions because she wasn't sure he was "on the up-and-up."
Domitro said Franco told her he had tried to help more people, but they refused, thinking he was trying to scam them.
She added that she and her husband could very easily have spent the gift card, but instead now have plans of their own to pay it forward.
"We're actually going to be gifting it to another family that we know who we think could benefit from it," Domitro said.
Mr. Franco has said that he wants to "be responsible" with his winnings, and this seems to be a great way to start.
And, just because he won a jackpot valued at $768 million doesn't mean he got quite that much money.
Franco opted for the lump sum and the IRS is coming for a chunk of the change.
The lump sum is valued at about $477 million. About $114.5 million will be immediately withheld in federal taxes, bringing the amount down to around $362.5 million.
The IRS will also likely tax the winnings at the highest federal income bracket, which now sits at 37 percent for individuals with incomes in excess of $500,000. The winner may owe any difference between that tax rate of 37 percent and the federal withholding rate of 24 percent when he files his tax return at the end of the year – or 13 percent. That would shave off another $62 million.
In Wisconsin, the state is expected to take a tax bite equal to 7.65 percent or the top tax rate, deducting another $36.5 million.
That brings the overall tax tab up to about $213 million. From the lump sum value of $477 million, this would mean the take home pay is around $264 million.
Winnings are not subject to the 3.8 percent net investment income tax.
If Franco plans on giving money away, under current law he is allowed to give up to $15,000 to as many people as desired without tax consequences.