Lucky lottery player wins $1 million playing Mega Millions – but has to give up more than $270,000 from prize
IN a stroke of luck, a lottery player emerged a millionaire after purchasing a Mega Millions ticket at a 7-Eleven.
The ticket, which matched all five white balls drawn on June 14, secured a substantial prize of $1 million.
The winner had to relinquish more than $100,000 of their prizeGetty Images - Getty
This windfall comes as a result of correctly matching the numbers 7, 20, 36, 45, and 47.
According to the Mega Millions rules, matching the five white balls without the Mega Ball entitles the winner to a $1 million prize.
This win is particularly timely, following a recent $552 million jackpot claimed by a player in Illinois on June 4, marking one of the largest Mega Millions wins in history, per the New Jersey Media Group.
Under New Jersey lottery regulations, lottery winnings are subject to federal and state taxes.
For this $1 million prize, the winner can expect federal taxes of 24% and state taxes of 3%.
This amounts to approximately $270,000 in taxes, leaving the winner with a net prize of about $730,000.
The New Jersey Lottery, responsible for overseeing such prizes, confirmed the ticket’s origin at a 7-Eleven in New Milford, 16 miles west of New York City.
As per lottery regulations, winners have up to one year from the drawing date to claim their prize.
Once claimed, the winner will have the option to receive the prize as a lump-sum payment, subject to the aforementioned taxes, or in annual installments over a period of 30 years.
PLAYING THE GAME
You can visit a local convenience store, gas station, or grocery store to purchase a ticket.
In some states, tickets are also available for purchase online.
You’ll need to choose six numbers to play, per the Mega Millions site:
Five white balls ranging from 1 to 70
One gold Mega Ball from 1 to 25
You also have the option of requesting a Quick Pick or Easy Pick.
This gives you the choice of a computer to generate random numbers for you.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two 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 tax winnings 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. That 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.
For an additional $1, players can add the Megaplier option, which can multiply non-jackpot prizes by two, three, four, or five times.
The Megaplier numbers are drawn before the Mega Millions drawing every Tuesday and Friday.
There are 15 Megaplier balls in total:
Five balls for 2x
Six balls for 3x
Three balls for 4x
One ball for 5x
Meanwhile, a family from Massachusetts appears to have incredible luck, having won the lottery twice.
And a mathematician has unveiled a lottery strategy that might increase players’ chances of retaining all their prize money if they win.
Remember to gamble responsiblyA responsible gambler is someone who:
Establishes time and monetary limits before playing
Only gambles with money they can afford to lose
Never chase their losses
Doesn’t gamble if they’re upset, angry, or depressed
If you or someone you know is struggling with gambling addiction, call the National Gambling Helpline at 1-800-522-4700 or visit the National Council on Problem Gambling online.
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