California lottery players struck gold during Wednesday night's Powerball drawing.
One lucky Golden State winner scored the Powerball's third-ever $1 billion jackpot by matching all five numbers and the Powerball.
But seven other California players got lucky too.
They were among 36 players across 16 states who matched five numbers to win $1 million during the draw. Three other players won $2 million each with a Power Play — a prize multiplier players can purchase with their ticket for an additional dollar.
The million-dollar winners live in the following states:
- California (7)
- Connecticut
- Florida (4)
- Illinois
- Indiana
- Kentucky
- Massachusetts (3)
- Maryland (2)
- Missouri
- New Hampshire
- New Jersey (2)
- New York (5)
- Ohio
- Texas (4)
- Wisconsin
- West Virginia
The three $2 million prize winners live in Florida, Pennsylvania and Rhode Island, according to Powerball.
Those California, Florida and New Hampshire winners are even luckier — they're in three of the eight states that don't charge state taxes on lottery winnings, so while they still won't see the full million or billion-dollar payout after federal taxes, they'll do better than winners in other states.
The million-dollar prize automatically drops to $760,000 after getting taxed at the 24% federal rate, according to Powerball's tax calculator.
And unfortunately for winners in New Jersey and New York, that prize will get even smaller after at least a 10% tax — the highest in the country — is levied on the winnings, according to usamega.com.
Unlike the jackpot winner, these million-dollar prize winners may not have the option to stretch their winnings out over a period of time — they have to take a lump sum. And while it may not be a full $1 million, receiving a check for hundreds of thousands of dollars with no strings attached can be life-changing for a lot of people.
It's OK to have some fun with the money, but important to also make a plan or speak with a financial advisor about smart ways to use it.
Even if you have to take the money as a lump sum, you could turn it into long-term passive income with the right investment moves, such as putting some of it in a low-cost index fund like the S&P 500. If you're looking for something more hands-on, your winnings could be your ticket into real estate investing.
You might have more urgent financial needs like high-interest debt or deferred home maintenance to attend to before you start thinking long-term. But above all, take your time to figure out what's best for your situation.
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