A Kentucky mother and son who won a $167.3 million Powerball jackpot now face a crucial financial decision that could significantly reduce their prize.
Linda Grizzle and her son, Shannon Farthing, beat the odds—approximately one in 302.6 million—to claim the state’s largest-ever lottery win. Shannon purchased the $2 ticket, and it was Linda who realized they had won.
“I would have never dreamed it; it hasn’t sunk in yet,” Linda said. “It’s going to be a good Mother’s Day. This is going to pay off my debt.”
The pair have yet to decide how to receive their prize. They can choose either a lump sum payment or an annuity spread over 30 years, with each annual installment increasing by 5%.
If they opt for the lump sum, the estimated payout is $77.3 million. However, this amount will be reduced by federal taxes. Winners of more than $5,000 must pay 24% to the federal government—about $18.5 million in this case. They may also be pushed into the highest federal income tax bracket due to the size of their winnings.
Additionally, Kentucky taxes lottery winnings at a rate of at least 4%, further reducing the total payout.
Linda and Shannon are consulting with a financial adviser to decide the best option.
They bought their winning ticket at a Clark’s Pump N Shop location. The store will receive a $37,000 bonus for selling the jackpot ticket.
Mary Harville, president of the Kentucky Lottery, described the win as “exciting.” It marks the first time in more than 14 years that a Powerball jackpot has been won in the state.
