I ‘thought it was a prank,’ says Powerball winner who won $100k from an April 1 drawing – but he immediately lost $29k | 0UD70JL | 2024-05-09 17:08:01
I 'thought it was a prank,' says Powerball winner who won $100k from an April 1 drawing – but he immediately lost $29k | 0UD70JL | 2024-05-09 17:08:01
ONE lottery player was shocked to find that they won a Powerball prize in April.
Their shock intensified when he was hit with a smaller prize than expected.
A Michigan resident initially believed he was the target of an April Fools' Day joke upon discovering he had won $100,000 from playing Powerball.
Jeremiah Maher, aged 43, successfully matched four white balls and the Powerball numbers – 19-24-40-42-56, PB: 23 – during the drawing on April 1, securing a $50,000 reward.
Because of the Power Play option, his winnings were doubled to $100,000.
"I looked at my numbers after the drawing and I thought someone was pulling an April Fools' Day prank on me," said Maher, per Click On Detroit.
"It felt so unreal to see my numbers come up in the drawing. It's definitely the most exciting April Fools' Day I've ever had!"
Maher purchased his winning ticket from the 7-Eleven store situated at 20945 Ecorse Road in Taylor.
Recently, Maher visited Lottery headquarters to claim his prize, intending to allocate the money towards constructing a new home.
TAX SMACK
When claiming prizes surpassing $5,000, the Lottery is required to withhold 24% for federal income tax and 4.25% for state income tax.
However, it's important to note that these withholdings might not cover your entire tax liabilities.
<!-- End of Brightcove Player --> To accurately determine your total tax obligations, it's advisable to consult with an accountant, tax attorney, or financial planner, as recommended by the Michigan Lottery.
Lottery winnings are considered income, necessitating the issuance of a W-2G form for personal income tax filing purposes.
Both the prize amount and the tax withholdings are reported to the Internal Revenue Service and the Michigan Department of Treasury, according to the state's lottery website.
For prizes totaling $1,000 or more, state law mandates the Lottery to cross-reference with the Department of Treasury to check if the winner owes any outstanding taxes, child support, Secretary of State fees, court judgments, or any other debts owed to the state of Michigan for collection.
In the event that a winner has outstanding debts, the Lottery is obligated to withhold the amount of the debt, potentially up to the entire prize amount.
In the case of Maher, he will be losing around $29,000 due to taxes, both state and federal.
POWER PLAY BOOST
The Power Play feature enhances your US Powerball experience by offering a multiplier option for your entry in every draw.
This lottery feature increases secondary prize amounts by specific multiples according to the game's regulations.
In Powerball, the Power Play feature doubles the second-tier prize to $2 million and multiplies winnings from the third to ninth prize tiers by up to five times.
For instance, if you secure the $50,000 Powerball third-tier prize, opting for Power Play could elevate your winnings to $500,000, which is a similar case to Maher, who doubled his $50,000 prize to one of $100,000.
While Power Play doesn't affect the US Powerball jackpot, it significantly boosts all other prize categories in the game.
It can double the $1 million second-tier prize and substantially enhance winnings across other tiers.
</div> </div> In other news, seven lottery participants became California's latest millionaires, collectively winning over $27 million.
And a fortunate Powerball participant secured a significant victory for his family-owned business in Delaware.
More >> https://ift.tt/7MTNBPH Source: MAG NEWS
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