I won $50,000 playing Powerball – had to ‘scan at least 3 times’ before finding out I lost $12,000

A KENTUCKY man got lucky in the Powerball lottery department this month.

Sanford Meyers, from Leitchfield, managed to win the $50,000 Powerball prize – but lost more than $10,000.

1

His winning ticket matched four white ball numbers and the Powerball, guaranteeing the game’s $50,000 jackpot.

Purchased at the Center Court Food Mart, the ticket sat untouched on Meyers’ desk for several days before he finally decided to check it.

Despite not being an avid gambler, Meyers typically buys a Powerball ticket once a month, making this win even more surprising.

“I told my wife I needed to look at that thing,” Meyers said.

“I opened the website and looked at it [ticket] and said, ‘I think I won a hundred and fifty dollars.'”

Later that day, Meyers took the ticket to a store to check it out, where the clerk confirmed the happy news.

“I said, ‘Are you kidding me?’ I had her scan it at least three times.”

Center Court Food Mart will also receive $500 for selling the winning ticket.

FULLY TAXABLE

Meyers visited lottery headquarters on May 9 and received $36,000, meaning he lost $12,000 in state and federal taxes.

The IRS classifies net lottery winnings as ordinary taxable income, meaning that after subtracting the cost of the ticket, the remaining amount is subject to federal income tax.

Your tax liability depends on your tax bracket, determined by your earnings and other sources of income.

Typically, the IRS withholds 25% and you are responsible for the rest when you file.

However, there is a silver lining for those in the highest tax bracket because federal income taxes operate on a progressive scale.

For example, as a single filer in 2022, after considering deductions, your tax rates are as follows, according to 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

During tax season, it’s crucial to remember that some states also tax lottery winnings, with rates ranging from 2.9% to 8.82% in states with an income tax.

Nine states do not charge state income tax, including:

If you live in one state but purchase a ticket in another, generally the state where you purchased the ticket (and where the prize is distributed) will withhold taxes at the applicable rate.

Calculating the exact amount owed to your state at tax time can involve a bit of math because you will receive a credit for the amount already withheld and the states involved will work out the tax allocation between themselves.

In Kentucky, income from lottery prizes is subject to the state’s income tax rate, according to Kentucky.com.

Starting in 2023, the rate has dropped from 5% to 4.5%, with the potential for an additional 0.5% reduction if certain conditions are met and the legislature approves the reduction.

Even if you live outside of Kentucky but buy your winning ticket there, you will still be responsible for state income tax on lottery winnings.

Remember to gamble responsibly
A responsible player is someone who:

• Set time and monetary limits before playing
• Only games with money they can lose
• Never chase your losses
• Don’t play if you are upset, irritated or depressed

If you or someone you know is struggling with gambling addiction, call the National Gambling Helpline at 1-800-522-4700 or visit the National Council on Problem Gambling online.

In other news, a lottery participant secured a substantial $100,000 prize, but only ended up receiving a fraction of the winnings.

And Virginia Powerball players have been warned to check their tickets to claim a $50,000 prize.