I'm not sure which I would take, but much like politics

thars no lesser evil

That figure of $156.177 million is after Federal taxes; there are state taxes in some places and even municipal taxes. New York state imposes an 8.82% tax and NYC has another 3.876% and Yonkers 1.323%.

(source: https://www.usamega.com/powerball-jackpot.asp)

I think there are many variables to be considered when choosing between cash option and annuity. Maybe the first question to ask yourself if opting for the cash is "Can I handle that much money, make it last?" If not, then the annuity is the way to go. Also very important is the winner's age and with that, their marital status, if they have children and the winner's health.

Another consideration that should be factored in is the annuity payout; it is heavily back-loaded, with the largest payments coming towards the end of the annuity. The Texas payment schedule starts out w/ a payment of $6.23+ million and the last payment is $25.648+ million. At my age, I am not sure I would live to see that payment. I am also childless and not married. I do have family to leave it to, however.

And that brings up another point; the IRS has some "funny" rules about that and unless they have recently changed them, if you pass away before the annuity is paid out, it goes to your heirs...BUT, the IRS wants the taxes owed on the annuity remainder right then, right there!

Just adding up the figures in my head, if the lottery winner died shortly after getting payment #25, that would still leave over $115 million left to be paid out. That would leave a tax owed (deducting the lifetime estate exemption) of over $40 million.

OK, at that rate, the IRS would only take the next year's payment and part of the other one, THEN the family gets the rest, but what if the winner passed away near the first of the annuity payouts? That happened here in Texas some years back and the Legislature had to step in and allow the heirs to get a lump sum payout instead of having to wait something like 12 yrs. before they saw a dime.

Then there's what some might call conspiracy-minded, "paranoia of the future", perhaps, but I'm not the only one concerned that there might be a case where the lottery "runs out of money". That's a long shot, sure, but a more realistic and alarming concern is "Are taxes going to go up?"

What with the current infatuation with socialism and several politicians calling for a HUGE increase in the top tier tax rate (at least one wants a 70% levy) . Suddenly that 37% Fed. tax rate doesn't seem like much.   Instead of a winner netting $15 million in yr. 25 of the annuity, their take home would be about $6 million.

There's also "wealth confiscation", another idea that's been touted by our feckless representatives. After all, you don't NEED all those millions, do you? <snicker> While the U.S. is not Cyprus, it CAN happen if American embraces socialism.

Sorry to have written an essay, but this is a lottery subject that I have thought about a great deal. With my circumstances, I am most definitely choosing the cash value.   Your mileage may vary. (just as does the MPG on the different models of Porsche cars I would choose between if I won!)

Thank You both, hearsetrax and mikeintexas. Those future tax rates are important to know. Plus the IRS rules.