One lucky lottery ticket buyer in Illinois could soon become a billionaire after Friday night’s $1.337 billion Mega Millions drawing.
According to lottery officials, the winning numbers — 13, 36, 45, 57 and 67 and a gold mega ball of 14 — matched a single ticket sold at a Speedway gas station in Des Plaines, Illinois, roughly 17 miles northwest of Chicago. The winner has not yet claimed the prize, Harold Mace, director of the Illinois Lottery Department, said at a news conference Saturday.
“We don’t know if they even know they’ve won an award,” Mace said. “So I encourage everyone to check their ticket.”
The jackpot ranks as the third-largest lottery prize in American history, and its winner — who likely paid about $2 for the ticket — will win either $780.5 million as a lump sum or receive annuity payments over the next 30 years.
If the winner chooses the more popular lump sum option that “Shark Tank” investor Kevin O’Leary recommends, he or she will have to account for a mandatory 24% federal withholding tax. Winner will also likely owe state income tax: If the winner lives in Illinois, the winnings will be considered taxable income at the state rate of 4.95%, and they may owe even more if they live in a state with a higher income tax rate the income.
That means the winner should expect to owe a minimum of almost $226 million in taxes, reducing the take-home amount to roughly $554.5 million — still a potentially life-changing amount of money.
In a statement Saturday, Mega Millions also noted that 26 tickets won second-tier prizes of $2 million or $1 million each, and a total of 14,391,740 tickets won some amount of money in nine different prize levels Friday night.
If you’re one of the lucky ones — especially if you’re the mystery person who won the jackpot — experts say you should take immediate steps to protect your ticket and your privacy.
“Privacy is key,” Emily Irwin, senior director of advice at Wells Fargo Wealth & Investment Management, told CNBC on Friday. “This keeps both you and your family safe from scammers or others who may start to come after you.”
Next, you need to hire a team of professionals to help you, including an experienced attorney, financial advisor, tax advisor, and insurance expert, as CNBC recently noted.
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