POWERBALL players have been urged to double check their tickets as a $50,000 prize hasn’t yet been claimed.
Officials in Indiana have issued a warning to all gamblers after one player managed to achieve the feat on Saturday night.
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They defied odds of approximately one in 913,000 as they landed the $50,000 prize.
And, they just missed out on the jackpot by just one number.
Chiefs revealed the Powerball ticket was bought from the shop Tobacco Road in Indianapolis.
Officials have since urged all ticket holders to make sure their slips are in a safe place, according to the Fox affiliate WXIN-TV.
And, they have been encouraged to arrange a meeting with financial advisers.
Gamblers should also speak with the state’s Hoosier Lottery service.
As the amount is $50,000, the winner must book an appointment to collect their prize.
In Indiana, winners have 180 days from the date of the draw to come forward and claim their respective prizes.
Gamblers who scoop more than $1,200 must pay 3.23% in state tax on top of the 24% they owe to the federal government.
Saturday night’s draw saw one player land a whopping $527 million jackpot after buying a ticket from a store in Anaheim, California.
The gambler, who hasn’t yet been unmasked, bought the slip from a 7-Eleven store – which will receive a $1 million check.
The winner will now face a choice on how they want to receive their prize.
They can either receive their prize in installments paid out over 30 years in what is known as the annuity, or they can receive a lump sum payment.
If they take the lump sum, it means their prize will be automatically cut to approximately $243.8 million.
But, the deductions will not stop there.
They will have to pay 24% tax to the federal government, which could be more than $58 million.
But, winners in California do not have to pay a state tax.
Florida and Texas also do not tax lottery winnings.
But, gamblers in New Jersey and New York are clobbered with hefty taxes.
In New York, players must pay more than 10% on their winnings.
And, in New Jersey, winners who pocket more than $500,000 must pay 8% to the state.
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.
