What Happens When Someone Hits the Lottery Jackpot? Claim Reviews, Rules and Tips for Big Prizes

So you've won a life-changing sum of money.

Now what?

Collecting the prize involves a claim process. What's involved in that process depends on how much money you've won.

Claiming a prize under $600 usually involves a visit to a lottery retailer. Bring your ticket, the clerk will hand you cash.

But the process involves a few more steps for big winners like the lucky player who walked into an Altadena service station in November and walked out holding a Powerball ticket worth the largest jackpot in U.S. history.

Here's what happens when lottery prizes are claimed in California.

What steps are involved in claiming big lottery prizes?

Claiming a prize of more than $600 requires a claim form. The California Lottery offers forms for individual and group winners here.

Note that there's a form for a group representative and another form for each remaining member of the group.

Claims can be submitted at a California Lottery district office or by mail.

How long do lottery jackpot winners have to claim a prize?

Remember that $2 billion Powerball jackpot draw in November? Someone finally claimed that prize, the largest in lottery history.

Three months might seem like a long wait to get your hands on that kind of money, but there's no rush once the clock starts ticking on the draw date.

Almost all Lottery draw games allow for 180 days from the date of the draw to claim a prize. The exceptions are Powerball and Mega Millions jackpots, which have a one-year deadline.

"If you hit the jackpot, you have up to a year to come forward," said Carolyn Becker, deputy director of public affairs and communications for the California Lottery.

Click here for a complete list of California Lottery claim deadlines.

Are big jackpot winners identified?

The California Lottery announced Feb. 14 that someone came forward to claim the $2 billion prize from the November draw. Once that prize win is confirmed by the Lottery, the winner faces decisions that come with being in the public spotlight.

The winner's name is public record, according to California public disclosure laws. The winner of the $2 billion jackpot declined to participate in media interviews or appear publicly, but provided a statement read by lottery officials at a Valentine's Day news conference.

Not every state has the same public disclosure rules. The California Lottery Winner's Handbook offers some advice on the topic.

"There will be immediate interest in your story," the handbook states. "According to California public disclosure laws, your name is public record. That means the media will likely attempt to contact you to ask a lot of fun questions about your win! Their efforts are made easier in this day and age of internet search engines.

"With that in mind, we urge you to consider taking part in media availability. We’ll take care of everything along the way by planning and guiding you through the media process. Winners have been better able to satisfy these media requests in one shot and get on with their lives."

A winner's full name, the name and location of the retailer who sold the winning ticket, the draw date of the win and the amount, including gross and net installment payments, are all considered matters of public record and subject to disclosure.

What are the most common lottery jackpot claim errors?

A claim form error can lead to a delay in getting your money. Here are five of the most common errors, according to the California Lottery.

• Players forget to sign a claim form.
• Players forget to include a birth date.
• Can you read it? The California Lottery cannot process claims without a legible, accurate and complete form.
• Check your address. Make sure it's legible and complete, including an apartment number.
• Sign the back of the winning ticket and include it with the form.

How are lottery jackpot wins reviewed?

After a big win is claimed, the Lottery conducts a thorough review process.

"Even when someone comes forward, the California Lottery doesn't publicly announce or acknowledge it until that claimant is thoroughly reviewed and vetted by our security and law enforcement division," Becker said

The investigation involves a background check with specific questions. For example, everyone knows where a winning ticket was sold, but not everyone knows what day or time. Was it a quick pick or custom number? Was there one ticket on the pay slip or multiple?

"Those are things we don't publicize with a big win, like the one in Altadena, because the eventual winner needs to corroborate those facts," Becker said. "Sadly, we do get people trying to scam us. Even manipulating a ticket. We have security measures on every ticket, whether it's a draw game or Scratchers that we don't talk about publicly because those are our secret sauce to identifying an actual winning ticket."

Investigators also will determine whether a winner owes money, such as back-taxes or child support. That money will be taken out of winnings as an offset.

Where's my check?

That depends on which payment option a winner selects.

Prizes offered in single payments should arrive in six to eight weeks from the claim date, as should the first installment payment if that's the option selected. Prizes paid in annual installments are sent close to the anniversary date of the big win. There are options for weekly installments and monthly payments, which arrive at the same time each month.

By default, all Powerball, Mega Millions and SuperLotto Plus jackpots are paid in 30 graduated installments. Winners can choose the cash value of the jackpot prize within 60 days following claim approval. The payment option is selected on a California Lottery Jackpot Election Payment Form that must be notarized and returned within 60 days of claim approval.

Group winners must all choose the same payment option.

Why is the payment amount less than the jackpot?

If the cash option is selected, it will be less than the announced jackpot. The reason is that the announced jackpot is the amount of money that would be earned if the Lottery invested the cash option amount over 30 years.

"If you choose the cash option for SuperLotto Plus, Mega Millions and Powerball jackpot prizes, you will receive the estimated cash value of the jackpot and not the advertised jackpot amount," according to the Handbook. "If you choose to take the annuity, you will, after 30 years, receive the full advertised amount."

What about taxes?

The California Lottery is required by the Internal Revenue Service to withhold federal taxes on many prizes. There is no California state or local tax withholding.

The rate on federal withholding is based on the winner's resident status

"The Lottery is required to withhold federal taxes of 24% for U.S. Citizens and Resident Aliens providing a social security number, and 24% for U.S. Citizens and Resident Aliens not providing a social security number," according to the Winner's Handbook.

You don't have to be a U.S. citizen to claim a prize. Anyone who selects that status on the claim form will have 30 percent withheld.

Still have questions. The California Lottery Winner's Handbook can help guide people through the process. It includes tips for handling donation requests, managing all that money and finding a reputable advisor.