Fast Facts About the Mega Millions Jackpot
Friday's Jackpot Is Currently 4th Largest In Game History
A JPEG image of the Iowa Lottery jackpot sign is available.
CLIVE, Iowa - Friday's lofty Mega Millions® jackpot now stands at an estimated $940 million annuity, $483.5 million cash option. That's the fourth-largest jackpot in the history of the game and follows the world-record Powerball® jackpot of $2.04 billion won in early November.
The current Mega Millions jackpot is the sixth-largest lottery prize ever offered in the United States.
When a jackpot reaches this level, it becomes harder to predict estimates for it in advance. Stronger sales nationwide push the jackpot even higher, and that has been happening in recent days.
Post-Holiday Focus
The timing of the current Mega Millions jackpot run has been a bit unusual, spanning the entire holiday season and continuing on. The past few weeks have been busy with holiday travel, family gatherings and year-end celebrations, but now that the New Year has begun, folks are back in their normal routines and Mega Millions sales are ticking up.
What's in store for 2023?
The Mega Millions jackpot has been growing for more than two months. It was last won on Oct. 14. Overall, Mega Millions was won six times in 2021 and six times in 2022. Now we'll see what 2023 brings!
Drawing Details
A total of 19,761 plays purchased by Iowa Lottery players won prizes in Tuesday's Mega Millions drawing. The winning numbers that night were 25-29-33-41-44 and Mega Ball 18. The next drawing in the game occurs at 10 p.m. Friday.
Sales Cut-Off Time
If you're buying a Mega Millions ticket, remember that there is a sales cut-off time for Friday's drawing. Here in Iowa, that time is 8:59 p.m. on the night of the drawing. If you buy a ticket after that, you'll still have a valid play, but it will be for a future drawing and you won't be in on Friday's big money!
The cut-off deadline is an automated procedure and it can't be pushed back. There have been Iowa players who waited too long and missed the cut-off time, so please remember that deadline.
Details About Cash vs. Annuity – And Taxes
If a jackpot winner were to choose the annuity option for Friday's big prize (that amount is currently estimated at $940 million), they would receive an immediate payment followed by annual payments that increase by 5 percent per year for 29 years and add up to the annuity total.
The cash on hand in the jackpot pool from the sale of tickets in the game is invested in securities, and the winner receives payments over time. Withholdings are applied to each payment that the winner receives. If a winner were to pass away before receiving all their payments, the money would go into that person's estate. The lottery would make future payments as determined by the estate or the court.
If a jackpot winner were to choose the cash option for Friday's prize (that amount is currently estimated at $483.5 million), they would receive the lump-sum amount in the jackpot pool from the sale of tickets in the game. There is no interest income involved in that scenario because the money is not invested. Another way of putting it is that the “rest of the money” does not exist in that instance. The winner receives the lump-sum amount in one payment, with withholdings applied to the entire amount.
Here in Iowa, 24 percent federal withholding applies to a jackpot prize along with 5 percent state withholding. Withholdings are automatically applied before the payment is made to the winner and cannot be modified or waived.
Withholdings are designed to cover the jackpot winner's tax liability from claiming a large lottery prize. However, the total taxes that a winner owes is dependent upon their financial circumstances outside of winning the lottery. In some instances, the withholding is not enough, in other instances, it's too much.
The details would be sorted out in the winner's income-tax filing for the year. That is why the Iowa Lottery always encourages its winners to consult a lawyer or financial planner before they claim their prize.
Please Play Responsibly
And as always, the Iowa Lottery reminds everyone that it only takes one ticket to win. Please play responsibly. Playing smart is a lot more fun.
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