Mega Millions $1.6-billion winning lottery ticket sold in South Carolina

Oct. 22: The Mega Millions lottery heads toward a record $1.6 billion drawing on Tuesday and people are lining up to buy tickets.

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

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.

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.