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POWERBALL players have been urged to check their numbers as a prize worth almost $140 million still hasn’t been snapped up.
The winning ticket was bought by a Walmart shopper ahead of the draw held on July 3.
A Powerball prize worth $139.3 million remains unclaimed[/caption]
The player defied the odds as they hit the jackpot following their purchase at the store in Huber Heights, Ohio, – located around 60 miles from Cincinnati.
But, they face a race against time to claim their new fortune, per the Fox affiliate WJW-TV.
In Ohio, prizes must be claimed within 180 days of their draw.
Powerball winners across the country face different deadlines to claim prizes.
This is because it depends on where the ticket was bought. Sometimes gamblers have just 90 days to come forward, while the deadline is one year in other areas.
If and when the winner comes forward, they will face a tricky decision before even taking home one dime.
This is because they will either receive the prize as one lump sum or in the format of 29 staggered payments.
The annual checks increase by 5% each year.
It’s estimated that the $139.3m ticket holder would receive in the region of $65 million if they opt for the lump sum.
But they will be hit with a series of deductions.
First, Internal Revenue Service chiefs will tax the winnings at a rate of 24%.
Lotto winners who scoop over $5,000 must pay that particular federal tax rate.
Because of the sheer size of the fortune, the winner could be thrusted into one of the top brackets of income tax.
The ticket was bought in Ohio meaning the player will be taxed at 4%. All winnings of $600 or more are taxed at that rate.
The lotto tax in Ohio is not the highest rate in the US.
New York taxes winners at 10.9% and the rate is one of the highest in the country.
Meanwhile, players in California and Florida do not pay any state tax on their fortune.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
How lottery players receive prizes has sparked debate among financial advisers and lawyers.
Last year, lawyer Andrew Stoltmann told The U.S Sun around 90% of players make the mistake in taking the lump sum.
He claimed some winners don’t have the structure around them to handle such a large amount of money.
“So they then take this massive sum of money and they just don’t really know what to do with that,” he said.
Financial adviser Robert Pagliarini also told The U.S. Sun that winners would be “better off” if they opted for the annuity.
And Jared James, a certified accountant and founder of the lottery algorithm website Lotto Edge, said it’s easier for winners to turn down requests for cash if they don’t have the money in the bank.
Top lottery winners in the US
Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.
- Edwin Castro – $2.04 billion, Powerball, Nov. 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, Oct. 11, 2023, in California.
- Unknown winner – $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
- Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida – $1.586 billion, Powerball, Jan. 13, 2016.
- Unknown winner – $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
- Unknown winner – he sued the mother of his child to keep his identity hidden – $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
- Unknown winner – $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
- Cheng and Duanpen Saephan, and Laiza Liem Chao – $1.326 billion, Powerball, April 7, 2024, from Oregon.
- Yanira Alvarez – $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club – $1.05 billion, Mega Millions, Jan. 22, 2021, from Michigan.
- Unknown winner – $842.4 million Powerball, Jan. 1, 2024, from Michigan.
