After a suspenseful wait of nine months, the lucky individual who held the winning Mega Millions ticket for the historic $1.128 billion jackpot in New Jersey has finally come forward to claim their prize, as announced on Tuesday.
The winning ticket was purchased at ShopRite Liquors, located on Route 66 in Neptune Township, New Jersey. Interestingly, the winner selected the numbers manually rather than using the Quick Pick option, which adds a layer of intrigue to the story. Under the law, they had a full year from the draw date to claim the winnings, suggesting that the verification and payout process might extend further.
ShopRite, the store where the ticket was sold, hosted a press event the day after the draw and pledged to donate their $30,000 bonus to a local charity. While the initial jackpot was massive, the actual amount the winner will receive is significantly less after state and federal taxes are deducted.
The winner opted for a lump sum cash payout, reducing the jackpot from $1.128 billion to approximately $537.5 million, as reported by Mega Millions officials and local media outlet NJ.com. This payout method is favored by many winners because it provides a substantial sum upfront, eliminating the need for annual payments over several years. However, the final amount will be further decreased due to tax deductions.
The IRS will withhold 24% of the winnings for federal taxes, which amounts to about $129 million. Additionally, New Jersey imposes an 8% state tax on prizes over $500,000, further reducing the payout by approximately $43 million. This leaves the winner with around $365.5 million after taxes, a staggering sum, albeit significantly less than the original jackpot.
The winner, who has chosen to remain anonymous as permitted by New Jersey state laws, has claimed the fifth-largest prize in Mega Millions history and the biggest ever won in New Jersey. Despite the substantial prize, the winner may face additional taxes when filing their annual tax return, as lottery winnings are considered taxable income. This could result in a federal tax rate as high as 37%, potentially increasing the total tax burden.
As the mystery that captivated millions for over nine months concludes, the focus now shifts to how the winner will wisely manage their newfound fortune. Meanwhile, the anticipation builds for the next Mega Millions draw, with the jackpot once again nearing the billion-dollar mark.
FAQs About the $1.128 Billion Mega Millions Jackpot
Where was the winning Mega Millions ticket sold?
The winning ticket was sold at ShopRite Liquors on Route 66 in Neptune Township, New Jersey.
How much will the winner receive after taxes?
After federal and state taxes, the winner will receive approximately $365.5 million.
Why did the winner choose a cash payout?
The winner opted for a cash payout to receive a large sum upfront instead of annual payments over many years.
Can the winner remain anonymous?
Yes, under New Jersey state laws, lottery winners can choose to keep their identity private.