LOTTO officials are hunting for a lucky player who won a whopping $3million out of a $30 scratch-off game – but there is a huge catch.
The anonymous player will have to give away at least $800,000 from his jackpot amount due to tax rules around the lottery.
A lucky winner still hasn’t claimed their jackpot (stock image)Authorities are searching for the lucky player who bought the ticket from a Uni-Mart located at 512 E. Mahoning St., Punxsutawney.
Interestingly, the retailer in Jefferson County will also get a $10,000 bonus for selling the winning ticket.
The lucky player has one year from the game’s end-sale date to claim the prize money – and must contact the Lottery officials at 800-692-7481.
Meanwhile, officials have issued a three-step process for winners to claim their jackpot prizes.
Assuming they are aware of the win, they must first sign the back of the ticket.
The player would also need to complete the Winner Claim Form and present a valid government-issued ID or proof of their Social Security number.
Next, since the prize amount is well above $601, they must mail the ticket to the Lottery officials or make an in-person appointment at the headquarters.
Following the claiming process to the letter is crucial to avoid any potential mistakes or delays.
They must also make a crucial decision about how to obtain the money.
Players are always offered two options — a lump sum distribution or annuity payments.
Annuity payments split the $100,000 over several years, something a lottery expert told The U.S. Sun is a great way for winners to “guarantee wealth.”
Should they make a financial mistake one year, they will still get another portion of the winnings the following year, for example.
ALL AT ONCE
Although the one-time lump sum provides more opportunity to re-invest and grow that wealth, so long as appropriate steps are taken.
This is why many winners still elect the option, but if the February 8 Powerball winner does this, they’ll face significant tax implications.
The federal government deducts at least 24% from lottery wins over $5,000, so an initial $24,000 would be withheld.
Given that Georgia has a tax rate of 5.39%, another $5,930 would also be taken out.
That leaves a net payout of around $70,610, and it’s still possible there could be more depending on the player’s tax situation.
Players are always advised to work with a financial advisor to know exactly how much they’ll be getting to keep and what they’ll owe.
Unclaimed lottery wins also remain this month in other states.
Another $100,000 Powerball prize in Oregon is still without an identified winner after it was purchased last year.
A $50,000 Powerball win in Arizona is also up for grabs.
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.
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