What to do if you win the lottery: 10 steps, in order
Most of the mistakes lottery winners make happen in the first few weeks: telling too many people, claiming too fast, spending before the tax bill arrives. You usually have weeks or months to claim, so there is no need to rush. Here is a calm checklist, in the order that matters.
1. Confirm the numbers with the official lottery
Check your numbers against your state lottery's official website or app, not just a news site or a third-party page (including this one). Look at the draw date on the ticket as well as the numbers.
2. Sign the ticket and keep it safe
In most states a lottery ticket is a bearer instrument: whoever holds it can claim it. Signing the back helps prove it is yours. Some lawyers advise winners who plan to claim through a trust to wait before signing, so ask first if that applies to you. Photograph both sides, then put the ticket somewhere secure, such as a safe deposit box.
3. Tell as few people as possible
Every person you tell is someone who can tell others. Limit it to your spouse or partner and the professionals you hire. You can share the news with family later, once you have a plan.
4. Check the claim deadline and rules
Each state sets its own deadline, often between 90 days and one year from the draw. Check whether you must choose cash or annuity at the time you claim, and whether your state lets winners stay anonymous or claim through a trust or other entity. See how to claim a lottery prize.
5. Build a small team
- A tax professional (a CPA or enrolled agent) with experience of large windfalls.
- A lawyer for claiming, privacy, contracts and estate planning.
- A fee-only financial planner, paid a flat or hourly fee rather than commission, who acts as a fiduciary.
Interview more than one of each. Be wary of anyone who contacts you first.
6. Understand the tax before you spend
A jackpot is taxed at up to 37% federal, plus state and sometimes city tax. Only 24% federal is withheld when you claim, so a large bill remains. Use the lottery tax calculator to see your real number, and read 24% withheld vs 37% owed.
7. Decide: lump sum or annuity
The lump sum is smaller but paid now; the annuity pays 30 payments over 29 years, each 5% larger than the last. The lump sum vs annuity guide walks through the trade-offs.
8. Claim the prize
Bring the signed ticket, a government photo ID and your Social Security number to the lottery office. Large prizes are claimed by appointment at a lottery headquarters or regional office. You will sign a claim form and receive Form W-2G. If the ticket was bought by a group, the claimant should file Form 5754 so each member is taxed on their share. See the pool guide.
9. Park the money and wait
Put the money in safe, insured, boring accounts while you plan. Set aside the tax you will owe. Pay off high-interest debts. Avoid big purchases, investments and loans to friends for at least six months.
10. Make a plan, then live it
With your team, write a plan: what you will spend, invest, give and keep for taxes. Update your will and beneficiaries. Decide on a simple answer for people who ask for money, such as "my advisor handles all requests". Many winners who stay happy are the ones who decided early what would change in their lives and what would not.
Scams to watch for
After a public win, scammers may pose as lottery officials, lawyers or charities. A real lottery never asks you to pay a fee to receive a prize. Do not share bank details by phone or email, and verify anyone who contacts you through official channels.
If the win is small
Prizes up to $600 can usually be claimed at any store that sells tickets. Between $600 and a few thousand dollars, you may claim by mail or at a lottery office. All prizes are taxable income, even if no tax is withheld.
This guide is general information, not legal, tax or financial advice. If gambling stops being fun, call or text 1-800-GAMBLER.