‘Life changing,’ says trio who won $842.4m Powerball jackpot – but a group vote lost them more than half the prize

MICHIGAN has just taken home a major and historic win for the state.

A lottery club known as The Breakfast Club has secured the largest Powerball jackpot ever won in Michigan, totaling an astounding $842.4 million.

The $842.4 million jackpot also marks the second-largest lottery prize in the state's history.

This is following a $1.05 billion Mega Millions jackpot in January 2021.

The last Powerball jackpot won by a Michigan player was $70 million in February 2020 by Cristy Davis of Waterford, per the Powerball website.

The winning numbers—12, 21, 42, 44, 49 with Powerball 01—aligned perfectly for the three-member club on January 1, 2024, the Powerball website reported.

The life-changing ticket was purchased at the Food Castle of Grand Blanc, approximately 10 miles south of Flint, situated at 3035 East Grand Blanc Road.

Mark K. Harder, attorney and spokesperson for The Breakfast Club, conveyed the exhilarating moment when one member, after hearing news reports and checking his phone, realized they held the golden ticket.

"This prize will positively affect our family for generations to come,” a club member said.

CASH CUT

The Breakfast Club, whose members traditionally buy Powerball tickets when jackpots soar into the hundreds of millions, opted for a lump sum payment of approximately $425 million after taxes.

The club received roughly $305 million.

This is following the required state withholdings: 24% federal tax amounting to about $102 million and 4.25% state tax totaling about $18 million.

In recognition of selling the winning ticket, Food Castle of Grand Blanc was awarded a $50,000 bonus commission.

Owner Bill Nannoshi expressed gratitude and announced plans to donate the entire amount to employees and the local community.

Michigan Lottery Commissioner Suzanna Shkreli emphasized the significance of such wins for retailers and state education funding, noting that Michigan schools have benefited significantly from lottery proceeds in recent years.

TOTALLY TAXING

If you live in one state and purchase a lottery ticket in another, typically the state where the ticket was bought (and where the prize is paid) will withhold taxes at its own rate.

You will need to reconcile how much you owe to your state during tax season, with a credit given for the amount already withheld.

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.

States will coordinate to determine how taxes are distributed between them.

There are nine states that do not impose an income tax:

These states generally do not levy state income taxes on lottery winnings, but residents may still owe taxes to their home state if they purchase tickets in a taxable state.

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Meanwhile, one of the winners of a multi-million dollar lottery jackpot has stepped forward to claim their prize, but the other half of the winnings remains unclaimed.

And a Maryland lottery player struck gold during her lunch break excursion, winning a jackpot of $150,000.

Remember to gamble responsibly

A responsible gambler is someone who:

• Establishes time and monetary limits before playing
• Only gambles with money they can afford to lose
• Never chase their losses
• Doesn’t gamble if they’re upset, angry, 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.