Lottery officials confirmed that the winning slip was sold in a store in Queens, New York, prior to the draw on December 7.
According to the lottery corporation, this was the first time a Powerball player in the Empire State had won the jackpot in four years.
Saturday’s Powerball draw was the first since October, when a Georgia player won $478.2 million.
The Powerball jackpot has been won nine times this year.
This accomplishment has not occurred since 2018, according to Powerball.
The New York ticket holder matched all six numbers in the draw, but has yet to come forward.
When they do, they will be able to choose how they want to receive their award.
They can choose the annuity or receive their win as a lump sum, which is believed to be worth $123.5 million.
The $256 million annuity will be paid out over a 29-year period.
The gambler would receive one installment before collecting annual checks.
They would get a 5% rise in each annual check.
If the player accepts the lump amount, his or her award will be reduced by more than $100 million.
However, that deduction is before tax.
The gamer will then be taxed at 24% on the federal level.
However, the amount they win might push them into the highest income tax rate.
Top lottery winners in the US
- 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.
That would be another 13% deducted from the total.
Because New York has one of the highest state taxes on lottery winners, the player does not receive a reprieve.
The state taxed players at a rate of 10.9%.
Lottery taxes in Maryland, Washington DC, Oregon, and New Jersey exceed 8%.
Meanwhile, gamers in California and Florida do not pay state taxes on their lottery winnings.
Gamblers in Tennessee, Texas, and Washington enjoy a state-level reprieve.
Lottery winnings: lump sum or annuity?
The two payout options can affect the amount of money you receive from your award.
Annuities are paid out in modest installments, commonly over a 30-year period.
Lump amounts pay all at once, but in a reduced amount, because taxes are withheld all at once. This implies that Uncle Sam receives 24% of your award straight away. Many states tax wins as well.
Annuities can provide winners time to build the financial foundation needed to receive a life-changing amount of money, whereas lump payments are taxed only once.
Inflation is also something to consider while making a decision, as rewards do not adjust with the value of a dollar. That means you’ll likely receive less valuable money near the end of your annuity.
Prize payouts vary by state and game, so it’s important to check with your state lottery to confirm payment procedures. A financial counselor can also help you analyze the benefits and drawbacks of each strategy.
Experts differ on whether to take a lump amount or an annuity.