MAN has detailed how it won a big Powerball prize after spending a little more to benefit in the end.
A resident of Paducah, Kentucky, now $150,000 richer, the lucky winner purchased a Powerball ticket for a Saturday night drawing, generating a significant windfall.
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Jimmy Sharp was one of two lucky players in Kentucky to match four white balls and the Powerball, securing the game’s third prize of $150,000.
With nearly half a century of experience working as a riverboat captain, Sharp had just completed a 28-day shift when he noticed a sign announcing the next Powerball jackpot.
Taking advantage of the opportunity, he stopped by the Quick Shop to buy his tickets.
Typically purchasing tickets when the jackpot exceeds $100 million, Sharp opted for the lottery terminal to randomly select his Quick Pick numbers.
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Fortunately, one of Sharp’s grandchildren suggested he add Power Play to his ticket purchases.
By choosing to include the Power Play feature for an extra dollar per line, your winnings have been amplified.
The Power Play number drawn in the April 6 drawing was three, tripling your prize to $150,000.
Upon realizing he had one of the winning tickets, Sharp promptly visited the store the morning after the drawing to have his tickets checked by the clerk.
“That’s when I found out and she told me to sign the fine. I felt really good,” Sharp said.
Accompanied by his son, Sharp visited lottery headquarters on Wednesday to collect his prizes.
His check was $42,000 less because of taxes, leaving him with $108,000.
Expressing his intention to deposit the winnings in the bank and help his family, Sharp shared his plans with lottery officials.
Top US Lottery Winners
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, November 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, October 11, 2023, California.
- Unknown Winner – $1.602 Billion, Mega Millions, August 8, 2023, Florida.
- Marvin and Mae Acosta of Los Angeles, California, John and Lisa Robinson of Munford, Tennessee, and Maureen Smith and David Kaltschmidt of Melbourne Beach, Florida – $1.586 billion, Powerball, January 13, 2016.
- Unknown Winner – $1.537 Billion, Mega Millions, October 23, 2018, from South Carolina.
- Winner unknown – he sued his child’s mother to keep his identity hidden – $1.348 billion, Mega Millions, January 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 Álvarez – $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club – $1.05 Billion, Mega Millions, January 22, 2021, from Michigan.
- Winner unknown – $842.4 million Powerball, January 1, 2024, from Michigan.
LOTTO WINNING TAX
Net lottery winnings are categorized by the IRS as ordinary taxable income.
Consequently, once the cost of the ticket has been deducted, the remaining amount will be subject to federal income tax.
Your precise tax liability depends on your tax bracket, determined by your earnings and other sources of income.
Therefore, the IRS typically withholds 25%, leaving you responsible for the rest when you file your taxes in April.
However, there is a silver lining for those in the highest tax bracket. Federal income taxes operate on a progressive scale.
For example, as a single filer in 2022, and after accounting for deductions, your tax rate is as follows, e.g. Yahoo Finance:
- 10% on the first $10,275 you earn
- 12% on the next $31,500
- 22% on the next $47,300
- 24% on the next $80,975
- 32% on the next $45,900
- 35% on the next $323,950
- 37% on anything over $539,900
When tax season arrives, it’s important to note that certain states will also claim a portion of your lottery winnings, the size of which depends on your place of residence.
Among states with income taxes, rates range from approximately 2.9% to 8.82%.
Notably, nine states do not impose state income taxes, including:
If you live in one state but purchase a ticket in another, generally the state where the ticket was purchased (and where the prize is disbursed) will withhold taxes at the applicable rate.
Determining the exact amount owed to your state at tax time may require some calculations, as you will receive a credit for the amount already withheld and the states involved will reconcile the tax allocation between them.
As for Kentucky, legislation provides that proceeds from lottery prizes are subject to the state’s income tax rate, for Kentucky.com.
In early 2023, this rate was reduced from 5% to 4.5%, with the potential for an additional reduction of half a percent if certain benchmarks are met and the legislator sanctions the reduction.
Even if you reside outside of Kentucky but purchase your winning ticket within the state, you will still be responsible for state income tax on lottery winnings.
Earning misfortunes
In other lottery news, one player said he trusted his decision and ended up $2 million richer.
Donnie Leviner, hailing from Laurinburg, North Carolinenear the state’s border with South Carolina, shared the reasoning behind his fateful lottery selection.
At just 18 years old, Leviner impulsively purchased a $20 Big Cash Payout ticket, as reported by the NC Education Lottery.
After his win, Leviner visited the state lottery to collect his prize.
However, an important decision regarding payment options resulted in him receiving less than half of his jackpot.
Lottery players can choose between a one-time payment or annuity payments spread over 20 years.
Opting for the one-time payment of $1.2 million, Leviner’s final figure dropped to $858,006, after deductions for state and federal taxes.
In other Powerball news, a 46-year-old winner said he will use his money to help fight cancer after reaching billionaire status.
And seven people were crowned lottery winners, with one of them winning $2.6 million by playing Powerball.
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This story originally appeared on The-sun.com read the full story
