Since another local person won a good sized prize – it is worth reviewing the link above.
Larger prizes almost always support taking the winnings in installments since taxpayers will get graduated tax rates, personal exemptions and itemized deductions shaved off their taxable income over the entire installment period (vs. just one year).
It is also important to fully evaluate who the actual owners of the ticket are. The purchaser? Other family members? Friends? Co-workers? The tax difference when the income is spread over multiple winners can be significant — and is much better than one person claiming the prize and then gifting a portion to others who may have a partial claim.
More questions? – (562) 216-1800.