Someone has claimed the record $2.04 billion jackpot won in the US Powerball in 2022. 

The jackpot was eventually won after 40-plus draws without a winner. A few of the draws had even been delayed for clerical reasons.

The winner will have the choice of getting 30 payments over three decades or a smaller lump sum. The latter is the most common choice among those who win big in the lottery.

For those who are interested, the winning ticket was bought at Joe's Service Center in Altadena, which is just outside Los Angeles. The winning numbers were 10, 33, 41, 47 and 56 - and 10 was the Powerball.

One doesn't have to be based in the US to enjoy the buzz of the Powerball. Indeed, you can bet on the Powerball jackpot from the UK at Lottoland.

Implications of lump sum option

If the $2.04 billion jackpot winner opts for the lump sum, they will receive approximately $998 million prior to taxes.

They will also owe the International Revenue Service standard tax of 24 percent - $239 million. This deduction will leave the winner with about $758 million.

But then there is the federal marginal rate to be removed from the sum as well - if the winner has no other income from, say, a salary. The winner's number of dependents, if any, charitable giving, again if any, could be taken into account as well. All in all, another $130 million could be removed. That would leave the sum at about $629 million.

And what of annual payments?

If they go for the $2.04 billion over one payment per year for nearly 30 years, they'd get approximately $68 million each time. That said, this would be reduced to about $43 million each time after mandatory federal taxes.

"The big impact on winnings is taxes," noted certified financial planner Dan Routh. "If you win, just realize how big the tax bill can be and make sure you are ready to handle it.

"There's a big responsibility that goes with having such a large sum of money. It would be important to surround yourself with a quality team that's working in your best interest."

Previous records and tax implications

This latest win exceeded the previous record by a big margin in the US Powerball. The total then was $1.586 billion. It had three winners at the time, in January 2016. Each of the three opted for the lump sum, rather than annual payments. They each received $327.8 million after taxes had been removed. The number was $528.8 million before taxed had been taken off.

In early October 2021, the odds of winning the US Powerball jackpot were also approximately one in 292 million. One winner effectively defied those odds to claim the $700 million. After prescribed taxes, though, that number dropped to about $496 million when taken as a lump sum or taken over 30 annual payments.

The US Powerball continues to prove popular on the back of its record jackpots and other lower tier prizes. It is drawn twice a week on Wednesdays and Saturdays, unlike other lotteries which might only happen once per week.