THE Powerball player who landed a $167.3 million jackpot risks losing a substantial chunk of her prize when she decides how she wants to receive it.
Linda Grizzle and her son, Shannon Farthing, defied odds of one in around 302.6 million to land the top prize.
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The pair etched their name into the history books as they recorded their state’s biggest ever lottery win.
Shannon bought the $2 slip and Linda called him when she thought they had hit the jackpot, per the Powerball.
And, she’s since spoken out about her epic victory.
“I would have never dreamed it; it hasn’t sunken in yet,” she said.
“It’s going to be a good Mother’s Day. This is going to pay off my debt.”
Linda and her son haven’t decided how they want to receive their prize.
They can either take home a single lump sum – which equates to approximately $77.3 million.
Or, the pair can receive individual payments over the next 30 years.
Each installment increases by 5% every year.
If Linda and her son decide to take the lump sum, they will not walk away with the $77.3 million cash value estimate.
Gamblers who win more than $5,000 must pay 24% to the federal government.
This means that approximately $18.5 million will be wiped from the prize pot.
The players may be forced into the top income tax bracket because of the amount they have won.
Linda and her son will have to pay taxes 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.
In Kentucky, winners are taxed at a rate of at least 4%, as per analysis conducted by USA Mega.
The pair are in talks with a financial adviser regarding the best course of action.
Linda and her son bought the ticket from a Clark’s Pump N Shop store.
And, the outlet will receive $37,000 after selling the ticket to the pair.
Mary Harville, the Kentucky Lottery president, hailed the duo’s victory as “exciting.”
Kentucky had to wait more than 14 years for a player to win the Powerball jackpot.
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.
- Rosemary Casarotti – $1.22 billion, Mega Millions, December 27 2024, from California
- Unknown winner – $1.13 billion, Mega Millions, March 26, from New Jersey