# If I win Powerball, what type of bank account do I need for my winnings (probably don’t need answer ever)? **URL:** \ **Category:** Factual Questions\ **Created:** [November 11, 2025, 2:15pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770 "2025-11-11T14:15:12Z")\ **Posts on this page:** 20\ **Page:** 5
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [November 12, 2025, 4:15pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/81 "2025-11-12T16:15:07Z")
And if they pay the IRS too little, you need to send in estimated taxes because you will get penalized if at year end you have paid too small of a percentage of your taxes due. ---
**Author:** ![commasense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/commasense/32/3017_2.png) [@commasense](https://boards.straightdope.com/u/commasense)\ **Post date:** [November 12, 2025, 4:26pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/82 "2025-11-12T16:26:48Z")
> [@bump](#): > > I think what I’d heard was that the fantastic vacations are considered income, so that even if you get that two week all expenses paid trip to the fantastic all-inclusive resort in Fiji, you still may be on the hook for whatever your tax percentage is of that total. This is correct. When I was on _Jeopardy!_ in 1991, my second-place prize (on my last show) was a four-day Bahamas cruise and three days at Disney World. I definitely had to pay taxes on the value of the trip, and had to get the show to lower the stated value, because the airfare was priced from Los Angeles to Fort Lauderdale, but I lived much closer, in Baltimore. And like @MrAtoz, I had to fill out a California tax return to get the withheld CA taxes refunded. But I did have to pay Maryland taxes on the winnings. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [November 12, 2025, 4:54pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/83 "2025-11-12T16:54:41Z")
> [@Saint\_Cad](#): > > And if they pay the IRS too little, you need to send in estimated taxes because you will get penalized if at year end you have paid too small of a percentage of your taxes due. You get a one year grace on that. The first time that you screw up by paying too little taxes, they waive the fees. Also, there is only a penalty if you miss by over a certain amount. There aren’t going to ding you for missing by a percent or two. ---
**Author:** ![JacobSwan](https://avatars.discourse-cdn.com/v4/letter/j/a6a055/32.png) [@JacobSwan](https://boards.straightdope.com/u/JacobSwan)\ **Post date:** [November 12, 2025, 4:55pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/84 "2025-11-12T16:55:11Z")
Slightly related, the USA is one of the few countries to tax Olympic winners on the value of their medals. > **[For US Olympians, gold medals come with a hefty tax bill](https://www.bbc.co.uk/news/business-37099066)** > > US athletes are leading in the Olympic medal count but when the winners return home they will be welcomed with both national pride - and a hefty tax bill. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [November 12, 2025, 4:57pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/85 "2025-11-12T16:57:06Z")
> [@md-2000](#): > > I was in NYC several years ago, and we decided to watch _The View_ being taped live. They typically have minor give-aways - maybe a hundred dollars or two for promotional items like cosmetics, hair dryer, books, toys, etc. on the show. We had received giveaways in this situation maybe 20-plus years ago, but now they wanted everyone to fill out a card with name, address, social security number. Since we were Canadian (show ID to get in), they did not give us a card, so we could not collect the freebies. i assume the “gift” was taxable (like Oprah’s cars) and since they had no way to chase foreigners for the taxes on $100, we were not eligible. They will send you a 1099 if the total from a given entity is over a certain amount. I think it’s $2k now but it was lower in the past obviously. If you don’t get the 1099, the Feds won’t know about it and you don’t have to worry about it. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [November 12, 2025, 5:00pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/86 "2025-11-12T17:00:26Z")
> [@JacobSwan](#): > > Slightly related, the USA is one of the few countries to tax Olympic winners on the value of their medals. > > [For US Olympians, gold medals come with a hefty tax bill - BBC News](https://www.bbc.co.uk/news/business-37099066) You’ll also get taxed if you win a Nobel Prize. ---
**Author:** ![JacobSwan](https://avatars.discourse-cdn.com/v4/letter/j/a6a055/32.png) [@JacobSwan](https://boards.straightdope.com/u/JacobSwan)\ **Post date:** [November 12, 2025, 5:03pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/87 "2025-11-12T17:03:10Z")
> [@Dewey\_Finn](#): > > You’ll also get taxed if you win a Nobel Prize. Not if, but when that happens I’ll be ok as I’m a UK tax payer! ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [November 12, 2025, 5:05pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/88 "2025-11-12T17:05:22Z")
Which one are you planning to win? Or are you going to sweep the field? ---
**Author:** ![JacobSwan](https://avatars.discourse-cdn.com/v4/letter/j/a6a055/32.png) [@JacobSwan](https://boards.straightdope.com/u/JacobSwan)\ **Post date:** [November 12, 2025, 5:09pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/89 "2025-11-12T17:09:17Z")
I’ve heard they’ll give the Peace Prize to _almost_ anyone.. ---
**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\ **Post date:** [November 12, 2025, 5:24pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/90 "2025-11-12T17:24:29Z")
> [@hajario](#): > > You get a one year grace on that. The first time that you screw up by paying too little taxes, they waive the fees. Also, there is only a penalty if you miss by over a certain amount. There aren’t going to ding you for missing by a percent or two. They might extend that courtesy, but if you paid 100% of the previous year’s tax (or 90% of current year, whichever is lower, almost certainly the former) there’s no penalty anyway, regardless of how many times you’ve done it. > [@Dewey\_Finn](#): > > You’ll also get taxed if you win a Nobel Prize. Sure, but that’s a medal that also comes with 1 million bucks. ---
**Author:** ![JacobSwan](https://avatars.discourse-cdn.com/v4/letter/j/a6a055/32.png) [@JacobSwan](https://boards.straightdope.com/u/JacobSwan)\ **Post date:** [November 12, 2025, 5:24pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/91 "2025-11-12T17:24:54Z")
In the UK the lottery person who visits you to verify your ticket will help you with banking. They strongly suggest that you open an account with a Private Bank and they have contacts at most of them on speed dial. Most regular High Street banks have a Private Banking arm so you can stick with a brand you know and trust, or pick a different one. The Queens bank, Coutts, is a popular choice as they have a team dedicated to sudden high net worth individuals. Lottery winners, football players, actors etc. People who have suddenly gone from zero to millions and need a lot of support and advice. I did some work for a different Private Bank a few years ago and they felt that all this new money was beneath them. But this was a bank that still kept muskets in the main banking hall, and most other banks have moved on from the 17th Century now. The prize sum is the amount you’ll get paid as tax is charged on the ticket price rather than the winnings. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [November 12, 2025, 5:29pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/92 "2025-11-12T17:29:26Z")
> [@thelurkinghorror](#): > > They might extend that courtesy, but if you paid 100% of the previous year’s tax (or 90% of current year, whichever is lower, almost certainly the former) there’s no penalty anyway, regardless of how many times you’ve done it. Yes. That’s what I meant by miss by over a certain amount but you explained in much better detail. ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [November 12, 2025, 5:30pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/93 "2025-11-12T17:30:03Z")
That’s a pretty old article. Nowadays, only athletes with annual income above $1 million pay taxes on Olympic winnings, anyone below that is exempt: > **[Do U.S. Olympians Pay Taxes on Medals & Winnings?](https://kahnlitwin.com/blogs/tax-blog/do-olympians-pay-taxes-on-their-medals)** > > Learn how the IRS taxes olympians winnings, the 2016 law that exempts most athletes, and exceptions for high earners. ---
**Author:** ![Jasmine](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jasmine/32/2964_2.png) [@Jasmine](https://boards.straightdope.com/u/Jasmine)\ **Post date:** [November 12, 2025, 5:34pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/94 "2025-11-12T17:34:59Z")
> [@HeyHomie](#): > > The first person you should hire would be a financial advisor who would answer this question for you in far more detail than you could ever imagine. Definitely! The average person has no idea how to be safely and profitably rich. Diversification is a key, and you will be guided as to how to diversify your money via accounts, investments, etc so that your money makes more money and you pay a minimum in taxes. ---
**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\ **Post date:** [November 12, 2025, 5:39pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/95 "2025-11-12T17:39:44Z")
> [@JacobSwan](#): > > Not if, but when that happens I’ll be ok as I’m a UK tax payer! Does this mean you can gift aid the prize fund? ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [November 12, 2025, 5:58pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/96 "2025-11-12T17:58:17Z")
A lot of people say, get a financial advisor. How would you pick one and not be one of the many whose advisor runs off with their money and leaves them holding a huge income tax bill? Or one that is convincing you that you should invest in the next big metal: ruthenium. Honestly, what’s wrong with (after taking 10% out for gifts and splurging and buying a house and car) dumping everything into a few index funds (SCHG, QQQ, &c.) and a dividend ETF for income? Check with a CPA to make sure the gift taxes are handled correctly and a trust attorney for estate planning. ---
**Author:** ![kitap](https://avatars.discourse-cdn.com/v4/letter/k/b9e5f3/32.png) [@kitap](https://boards.straightdope.com/u/kitap)\ **Post date:** [November 12, 2025, 7:00pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/97 "2025-11-12T19:00:37Z")
I’m onto you, Simon Templar. ---
**Author:** ![Czarcasm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/czarcasm/32/4050_2.png) [@Czarcasm](https://boards.straightdope.com/u/Czarcasm)\ **Post date:** [November 12, 2025, 7:06pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/98 "2025-11-12T19:06:58Z")
You got half of it. ---
**Author:** ![thelurkinghorror](https://avatars.discourse-cdn.com/v4/letter/t/7c8e57/32.png) [@thelurkinghorror](https://boards.straightdope.com/u/thelurkinghorror)\ **Post date:** [November 12, 2025, 7:31pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/99 "2025-11-12T19:31:28Z")
Isn’t that a concern with even a more modest windfall? You can find an advisor by reputation, there’s no guarantee they’re honest or good, but probably won’t take a run with your money. That’s usually sound investment advice, but also the many horror stories of people blowing through their money quickly should be cautionary. And legal representation can shield you from that second cousin you haven’t spoken to in 20 years suddenly becoming friendly or someone thinking they can use lawsuits to get a piece of it. ---
**Author:** ![hajario](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hajario/32/171_2.png) [@hajario](https://boards.straightdope.com/u/hajario)\ **Post date:** [November 12, 2025, 8:01pm UTC](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770/100 "2025-11-12T20:01:48Z")
> [@Saint\_Cad](#): > > A lot of people say, get a financial advisor. How would you pick one and not be one of the many whose advisor runs off with their money and leaves them holding a huge income tax bill? Or one that is convincing you that you should invest in the next big metal: ruthenium. They can’t take your money. They can access your brokerage account to make trades and they can transfer funds to your checking account or whatever but that’s it without doing something elaborate. There are other checks and safeguards as well. You pick them the same way you pick any contractor. Word of mouth, interviewing them and reviews. [Previous page](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770.md?page=4) [Next page](https://boards.straightdope.com/t/if-i-win-powerball-what-type-of-bank-account-do-i-need-for-my-winnings-probably-don-t-need-answer-ever/1024770.md?page=6)