A LOTTERY player has yet to step forward and claim a ticket worth tens of thousands of dollars.
They landed the Powerball prize pot over the weekend, and officials are looking to identify the winner before time runs out.
A Powerball ticket worth $50,000 is still unclaimed in one state (stock image)[/caption]
The cash will vanish if the player doesn’t come forward soon (stock image)[/caption]
The Arizona resident purchased their ticket at a Sons Food Store in the northern portion of Phoenix for the November 2 drawing, per KTAR News.
Results for the drawing cited 10, 45, 48, 58, 61, and a red Powerball of 2 as the lucky digits.
The unidentified player matched four of the five white balls and the red Powerball, making for a $50,000 payday.
The odds of landing that combination are 1 in more than 900,000.
Arizona Lottery winners are given 180 days from the drawing date to claim their cash.
That means the player has until May 1, 2025.
Should they not make it by the deadline, the funds would be forfeited.
The money would be re-distributed into the state’s general fund for programs that benefit residents.
STEPS TO CLAIM
Assuming the player is holding onto the ticket and intends to bring it to officials, they’d need to first sign the back of it.
Then, they could either complete a form and mail it to the Arizona Lottery or head in person to an Arizona Lottery Office.
This is always the process for any wins over $600.
Once everything is verified, the player will have to make the crucial decision of how to accept the cash.
Lottery players are always given two options: get all the money upfront through a one-time lump sum distribution or split it up through annuity payments over several years.
Neither is bad, although there’s been significant controversy over which option is better among lawyers and financial experts.
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.
TAKE IT AWAY
Assuming the unidentified Arizona winner chooses the lump sum, the $50,000 takes a significant and immediate tax hit.
The federal government taxes all lottery winnings above $5,000 at 24%.
States set their rate, with Arizona’s being 4.8%.
That means about $14,400 is taken out of the prize before the player sees anything.
They would then walk away with $35,600, still a significant return on the $2 investment for the Powerball ticket.
Winning lottery amounts worth much more also remain unclaimed.
A player in Missouri has yet to get their $1 million Mega Millions win from a drawing at the end of October.
Kansas Lottery officials are also searching for a $100,000 winner.
