Someone in South Carolina has a winning ticket for a Mega Millions lottery prize of $1.6 billion.
That’s according to the South Carolina Education Lottery, which said a single ticket for the record-shattering prize had been sold in the state.
Coverage of the Mega Millions lottery on Globalnews.ca:
The $1.6-billion prize is the biggest ever.
The winning numbers were 5, 28, 62, 65, 70, with a Megaball number of 5.
Odds of winning the prize were 1 in 302 million.
Of course, whoever wins the prize won’t be able to turn in a ticket and be handed over $1 billion in cash.
READ MORE: Here are the best and worst states to win the $1.6B Mega Millions lottery jackpot
The winner will only be able to collect a cash prize of $904 million — and that’s thanks to the Internal Revenue Service (IRS), CNBC reported.
There are two ways you can take the money — in a lump sum payment, or in an annuity that’s paid to you in instalments.
In either case, the prize is subject to a tax withholding of 24 per cent.
Then, it could be subject to further taxation such as state taxes, so much that your final cash prize could be anywhere between $489.8 million and $569.6 million, according to CNBC.
Josh Barro at New York Magazine recommended that any winner take the annuity for a number of reasons.
One is that it provides “big tax advantages,” another that it’s a great way to ensure you can take the money in 30 annual instalments that will “help you remain rich” for the rest of your life.
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