How to claim a lottery prize
How you claim a lottery prize depends on how much you won and which state sold the ticket. Powerball and Mega Millions prizes are always claimed through the lottery of the state where the ticket was bought, even if you live somewhere else. Here is what to expect at each prize level.
Before you claim anything
- Check the numbers and draw date on your state lottery's official site.
- Sign the back of the ticket (unless your lawyer advises otherwise for a large prize).
- Photograph both sides and keep the original safe.
- Look up the claim deadline for the state that sold the ticket.
Small prizes (up to $600)
Prizes up to $600 can usually be cashed at any licensed retailer in the state that sold the ticket. The store scans the ticket and pays you in cash or a voucher. No tax is withheld, but winnings are still taxable income that you are supposed to report.
Medium prizes ($600 to a few thousand)
From $600, the lottery must report the prize to the IRS, so you will be asked for your Social Security number and will receive Form W-2G. Many states let you claim these prizes by mail or at a regional office. Above $5,000, the lottery withholds 24% for federal tax, and most taxing states withhold state tax too.
Large prizes and jackpots
Large prizes are claimed in person at the state lottery's headquarters or a designated office, often by appointment. Expect to bring:
- The original signed ticket.
- A valid government photo ID.
- Your Social Security card or proof of your number.
- For a group win, every member's details and tax ID for Form 5754.
- For a trust or entity claim, the documents your lawyer prepares.
The lottery validates the ticket, which can take time for a jackpot. You choose between cash and annuity if you have not already; some states set a window for that choice. Payment is usually made by bank transfer some days or weeks later.
Claim deadlines
Each state sets its own deadline, commonly between 90 days and one year from the draw date. Some states also set a shorter deadline for choosing the cash option. An unclaimed prize goes back to the lottery or to the state's designated programs, so do not wait until the last week.
Bought the ticket in another state?
You must claim from the lottery that sold the ticket. Some states accept large claims by mail, but most jackpot claims are made in person. The selling state may withhold its tax on a nonresident prize, and your home state may tax it again with a credit. See lottery taxes by state.
Staying anonymous
A number of states allow winners of large prizes to keep their identity private, sometimes only for a limited time or above a set amount. In others, your name and city are public record. Some winners use a trust or other legal entity where the state allows it. Ask your state lottery and a lawyer before you claim.
Debts that can be taken from prizes
Many states check winners against lists of unpaid child support, state taxes or other debts owed to the state, and take what is owed from the prize before paying you.
After you claim
Keep your W-2G and claim papers. Set aside the federal tax that was not withheld: on a jackpot, roughly 13% of the prize. Read what to do if you win for the next steps.
Rules vary by state and change over time. Always check with the lottery that sold your ticket.