1. What is the CA Lottery Annuity?

The California Lottery annuity option pays the jackpot in 26 graduated annual payments. This calculator helps determine the amount of each annual payment based on the total jackpot amount.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Jackpot — Total lottery prize amount in USD
• 26 — Number of annual payments

Explanation: The total jackpot is divided equally over 26 annual payments.

3. Importance of Annuity Calculation

Details: Understanding annuity payments helps winners plan their finances and compare the annuity option against the lump sum option.

4. Using the Calculator

Tips: Enter the total jackpot amount in USD. The amount must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: Are the payments exactly equal?
A: While the calculator shows equal payments, actual payments may increase slightly each year to account for inflation.

Q2: Can I get all the money at once?
A: California Lottery offers both annuity and lump sum options, with the lump sum being less than the total jackpot amount.

Q3: Are the payments taxable?
A: Yes, each annual payment is subject to federal and state income taxes in the year received.

Q4: What happens if a winner dies before receiving all payments?
A: The remaining payments typically continue to the winner's designated beneficiaries.

Q5: How does this compare to other states' lotteries?
A: Most U.S. lotteries use similar annuity structures, typically paying over 25-30 years.