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I Won a $150,000 Powerball Prize by Paying Extra to Triple My Winnings

A MAN has detailed how he won a hefty Powerball prize after spending a little extra to ultimately benefit himself.

The lucky winner, a resident of Paducah, Kentucky, now $150,000 richer, purchased a Powerball ticket for a Saturday night drawing, resulting in a significant windfall.

Jimmy Sharp was one of two Kentucky players to match four white balls and the Powerball, securing the game’s third prize of $150,000.Credit: Powerball
When Sharp realized he had one of the winning tickets in his possession, Sharp immediately visited the store the morning after the drawing to have his tickets verified by the clerk.Credit: Getty

Jimmy Sharp was one of two lucky players in Kentucky to match four white balls and the Powerball, securing the game’s third prize of $150,000.

With nearly half a century of experience as a riverboat captain, Sharp had just finished a 28-day shift when he saw a sign advertising the upcoming Powerball jackpot.

He took the opportunity and stopped by Quick Shop to buy his tickets.

Normally, Sharp would buy tickets once the jackpot exceeds $100 million, choosing the lottery terminal to randomly select his numbers (Quick Pick).

Read more Powerball stories

Coincidentally, one of Sharp’s grandsons suggested adding Power Play to his ticket purchase.

Choosing to include the Power Play feature for an extra dollar per line increased his winnings.

The Power Play number drawn for the April 6 drawing was three, tripling his prize to $150,000.

When Sharp realized he had one of the winning tickets in his possession, Sharp immediately visited the store the morning after the drawing to have his tickets verified by the clerk.

‘Then I knew and she told me to sign the card. I felt pretty good,” Sharp said.

Sharp, along with his son, visited the lottery headquarters on Wednesday to collect his winnings.

His check was $42,000 less because of taxes, leaving him with $108,000.

Sharp expressed his intention to bank the winnings and help his family and shared his plans with lottery officials.

Unclaimed Lottery Riches: Are You a Winner?

Top Lottery Winners in the USA

Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in American lottery history.

  • Edwin Castro – $2.04 billion, Powerball, November 8, 2022, in California.
  • Theodorus Struyck – $1.765 billion, Powerball, October 11, 2023, in California.
  • Unknown winner – $1.602 billion, Mega Millions, August 8, 2023, in Florida.
  • Marvin and Mae Acosta of Los Angeles, California, John and Lisa Robinson of Munford, Tennessee, and Maureen Smith and David Kaltschmidt of Melbourne Beach, Florida – $1.586 billion, Powerball, January 13, 2016.
  • Unknown winner – $1.537 billion, Mega Millions, October 23, 2018, from South Carolina.
  • Unknown winner – he sued the mother of his child to conceal his identity – $1.348 billion, Mega Millions, January 13, 2023, from Maine.
  • Unknown winner – $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
  • Cheng and Duanpen Saephan and Laiza Liem Chao – $1.326 billion, Powerball, April 7, 2024, from Oregon.
  • Yanira Alvarez – $1.08 billion Powerball, July 19, 2023 in California.
  • Wolverine FLL Lottery Club – $1.05 Billion, Mega Millions, January 22, 2021, from Michigan.
  • Unknown winner – $842.4 million Powerball, January 1, 2024, from Michigan.

TAX ON LOTTO WINNINGS

Net lottery winnings are categorized by the IRS as ordinary taxable income.

So once you deduct the ticket cost, the remaining amount is subject to federal income taxes.

Exact tax liability depends on your tax bracket, determined by your profits and other sources of income.

Therefore, the IRS typically withholds 25%, leaving you responsible for the remainder when you file your taxes in April.

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

For example, if you are a single filer in 2022, and after deductions, your tax rate would be as follows, per 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 any amount over $539,900

When tax season rolls around, it’s important to note that certain states will also claim a share of your lottery winnings, the amount of which depends on where you live.

Among states with an income tax, rates range from approximately 2.9% to 8.82%.

Notably, nine states do not impose state income taxes, including:

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

Determining the exact amount you owe to your state at tax time may require some calculation, as you will receive a credit for the amount already withheld, and the states involved will coordinate the distribution of taxes among themselves.

As for Kentucky, the legal mandates arising from lottery prizes are subject to the state’s income tax rate, per Kentucky.com.

From the beginning of 2023, this rate was reduced from 5% to 4.5%, with the possibility of a further reduction of half a percent if certain benchmarks are met and the legislature approves the reduction.

Even if you live outside of Kentucky but obtain your winning ticket within the state, you are still liable for state income taxes on lottery prizes.

WINNING AWARDS

In other lottery news, one player said he trusted his intuition and ended up $2 million richer.

Donnie Leviner, a native of Laurinburg, North Carolina, near the state line with South Carolina, shared the reasoning behind his ill-fated lottery selection.

At just 18 years old, Leviner impulsively purchased a $20 Big Cash Payout ticket, as reported by the NC Education Lottery.

After his win, Leviner visited the state lottery office to receive his prize.

However, an important decision about payment options resulted in him receiving less than half of his jackpot.

Lottery players are given the choice between a lump sum payment or an annuity payment spread over twenty years.

By opting for the one-time $1.2 million payment, Leviner’s final net amount dropped to $858,006, after state and federal taxes.

In other Powerball news, a 46-year-old winner has said he will use his money to help fight his cancer after reaching billionaire status.

And seven people have been crowned lottery winners, with one winning $2.6 million playing Powerball.

Even if you live outside of Kentucky but obtain your winning ticket within the state, you are still liable for state income tax on lottery prizesCredit: GETTY