![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/historic-1-08billion-powerball-lotto-winner-will-lose-124m-if-they-pick-popular-option/&media=https://uknews.evprotec.com/wp-content/uploads/2023/07/0_Powerball.jpg&description=California Lottery officials had confirmed Las Palmitas Mini Market sold the winning ticket and its owner, Nabor Herrera, will receive a whopping $1million bonus from Powerball The historic $1billion Powerball jackpot winner will automatically lose $124million - if they pick a lump sum payment. The lucky California winner, who has not been officially named, matched with the winning numbers on Wednesday and became an instant billionaire overnight. However, if they decide to take all of the money at once, their jackpot winnings will be cut significantly due to taxes, according to a financial expert. Winners are given the option of cashing in the lump sum or taking the cash instalments over a number of years. But if the Powerball winner opts for the whole amount, they will receive $516.8 million and automatically pay a whopping 24 percent in taxes. Financial planner John Chichester Jr, founder and CEO of Chichester Financial Group in Phoenix, said the jackpot winner should work with a tax professional and financial advisor immediately before deciding to cash in. He told CNBC: "It's all about protection and paying the least amount of taxes possible, so working with professionals is very important." The expert added winners who choose the 30-year instalments may have "a lot more flexibility for tax planning rather than cashing the jackpot. He said if the winner chooses the $465.1 million cash option, the 24% withholding automatically reduces your prize by nearly $111.6 million. 'That's exactly what happens with the lottery,' he said. 'The 24% [withholding] is not the only tax bill", Mr Chichester added. Although the winning ticket was purchased in Los Angeles, it doesn't necessarily mean the player is from California and they could be hit by state lotto tax rates, which range from 2.9 percent in North Dakota to a huge 8.82 per cent in New York. However, some states do not tax lottery winnings, such as Tennessee, Florida and California. States such as Ohio impose a four p){kind=link}
California Lottery officials had confirmed Las Palmitas Mini Market sold the winning ticket and its owner, Nabor Herrera, will receive a whopping $1million bonus from Powerball
The historic $1billion Powerball jackpot winner will automatically lose $124million – if they pick a lump sum payment.
The lucky California winner, who has not been officially named, matched with the winning numbers on Wednesday and became an instant billionaire overnight.
However, if they decide to take all of the money at once, their jackpot winnings will be cut significantly due to taxes, according to a financial expert.
Winners are given the option of cashing in the lump sum or taking the cash instalments over a number of years.