Powerball prizes must be claimed in the state where the tickets were purchased. Each state has its own rules about when prizes must be claimed and it is the responsibility of the player to come forward in time. Visit the How to Claim page for more information. Winning tickets must be checked and validated by the lottery operator in the state where the ticket was bought, or by an agent of the operator, such as an authorized retailer, before prizes can be paid out.
Anyone who wins a large Powerball prize must pay federal taxes in the US, regardless of whether or not they are a resident. This is set at a rate depending on your total annual income (including money from lottery winnings). The lottery makes an immediate 25 percent federal withholding on prizes of more than $5,000, and most states levy a local withholding, although Tennessee and South Dakota do not.
Below are the tax withholdings by state, although certain other factors – such as residency – could affect these. For further advice, consult a professional financial advisor.
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