A LUCKY lotto player has won a top prize of $1 million on a scratch-off ticket.
The Illinois native will lose nearly 30% of the winnings due to federal and state taxes.
“I was at Walmart the other night when I saw the new Celebration Instant Tickets and they caught my eye, so I bought a $10 one,” explained the lucky winner.
“I didn’t think anything of it. I actually put it in my purse and forgot about it until the next morning.”
“I started scratching the ticket and saw I had a matching number for a million dollars. I thought it was a mistake,” she added.
Just like other gambling winnings, lottery prizes are taxable income.
Illinois winners are slapped with a state tax rate of nearly 5% and a federal rate of 24%.
WINNER WINNER
The winning scratch-off ticket was purchased at Walmart, located at 1050 North Rohlwing Road in Addison, Illinois.
For selling the winning ticket, the store will receive a selling bonus of one percent of the prize amount.
“I have five children, ten grandchildren, and two great-grandchildren. My husband and I were married for forty-nine years until he passed away in October,” shared the winner.
“He was the breadwinner and took care of all of us. I truly believe this winning ticket is a blessing from him.”
The Illinois Lottery was founded in 1974 and has contributed over $24 billion to support public education in Illinois for nearly 40 years, according to the website.
In 1974, Illinois became the first state to air a drawing live on television.
HOW TO CLAIM
The Illinois Lottery asks winners to sign the back of their ticket if purchased in retail.
Winners can claim their prizes at retail, at a Claim Center, by mail, or via an e-Claim.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
Both payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states have tax wins as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. This means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
Winners are also sure they claim their prize in time:
- Mega Millions, Powerball, Lotto, Lucky Day Lotto, Pick 3, Pick 4, and Fast Play prizes must be claimed within one year after the drawing date.
- Winners of Mega Millions, Powerball, and Lotto may choose a lump sum payment or annuity payments. In order to opt for the lump sum payment, the prize must be claimed within 60 days of the drawing date. Winners who claim after that time can only receive the annuity payment.
- Instant Ticket prizes must be claimed within one year after the game’s announced end date; you can check end dates here.
Players who win $600 or less can only claim their prizes at an Illinois Lottery retailer. Most Illinois Lottery retailers will cash winning $600 or fewer tickets.
Winners looking to claim their prizes at a Claim Center need to make an appointment only.
To set up an appointment, winners should select a Claim Center location, date, and time from the available time slots on that day on the Illinois Lottery website.
Winners are also asked to bring a completed claim form and winner questionnaire, valid photo ID, proof of Social Security, and the signed winning ticket to their appointment.
To claim by mail, winners should place their ticket, claim form, and winner questionnaire in an envelope addressed to the Illinois Lottery Claims Department at PO Box 19080, Springfield, Illinois 62794-9912.
Meanwhile, Delaware officials have asked lottery players to double-check their tickets for unclaimed prizes of over $300,000.
And a father-son duo won a huge $1 million jackpot from a scratch-off ticket but instantly lost half of the winnings.
