Dreaming of buying a winning lottery ticket? Here are some things to know if you get lucky

With no one winning the gift of a Powerball jackpot on Christmas, one lucky player could win the prize, which has now climbed to an estimated $685 million for Wednesday’s drawing.

Only three Powerball jackpots have been won on Christmas. The most recent was in 2013 when a player in Missouri won a $71.5 million jackpot, according to Powerball.

The current jackpot has an estimated cash value of $344.7 million, and there have been 32 consecutive drawings without a winner. It is the Powerball’s fourth jackpot to exceed half a billion dollars this year.

There have been some major national lottery jackpots in 2023.

Between the Mega Millions and Powerball, there were a collective five jackpots that broke into each respective games’ top-10 records. The Mega Millions had its largest prize at $1.602 billion and third-largest at $1.348 billion. While the Powerball had its second-, fourth-, and seventh-largest prizes, totaling $1.765 billion, $1.08 billion, and $754.6 million, respectively.

While none of those jackpot winners hailed from the Lone Star State, some playing in North Texas still padded their wallets with smaller wins.

To name a few in recent memory: A lottery ticket worth up to $17 million was sold at a 7-Eleven in Far North Dallas, a Weatherford resident won an estimated annuitized $8 million on a Quick Pick ticket, a Mesquite resident claimed a $1 million prize off a scratch ticket, a Frisco resident splurged $20 on a scratch ticket that ended up being a $1 million winner, and a Dallas resident bought a ticket at a Players Cafe in Austin that netted them $1 million.

So the odds may be long on winning a record-setting national jackpot lottery prize. But there’s still a chance that, if you play, you could win.

What would you do next, though? And how would you accept your payout?

One of the first decisions a lottery winner likely makes is how to accept the prize. One option is to accept the prize as a lump-sum payment. That results in a smaller but immediate payout. The other option, an annuity payout, is paid out in multiple installments over several years that typically totals a larger overall amount.

There are a few things you should consider before making a decision between payouts:

• Weigh your options. AARP recommends weighing the pros and cons of getting all the money at once or spreading it out. The lump-sum payment would give someone the ability to pay off debts quicker or be used to invest the money while annuity payments offer a reliable long-term stream of income.
• Make note of the tax implications. The payments would be taxed the year they’re received, and, according to a TurboTax, choosing annuity could net more money in the long run since the not-yet-claimed money accrues interests over time. Every winner would have to pay federal taxes, but state taxes vary.
• Talk to experts. It’s a good idea to hire, or at least consult with, a tax accountant, Forbes suggests. They can provide a better idea of the implications of taking all the money at once or dolling it out over a couple decades. Others have recommended also hiring an attorney or a financial advisor. When you’re searching for who to hire, you’ll want to seek out companies who specialize in working with ultra-high net worth individuals.

Other advice experts have given to lottery winners includes:

• Opt to remain anonymous when collecting the prize (Texas allows this) and protect your privacy.
• Avoid making sudden major lifestyle changes with the newfound money. In fact, experts recommend creating a budget to live within.
• Make paying off existing debts a priority.
• Some say it’s smart to put aside some of the money toward safe, small investments. Although Dallas billionaire Mark Cuban previously told The Dallas Morning News that there’s no need to do this and to just keep the money in the bank instead.
• Donate to charitable causes.

Staff writer Aria Jones contributed to this article.