I wonder just how many of these million dollar jackpots go unclaimed in any given year? 

Does anyone keep a running record of these things?

Even if claimed, winner gets $2M less due to fallen interest rates

Time appears to be running out on somebody's multimillion-dollar lottery payday.

Terry Rich, chief operating officer of the Iowa Lottery, said Tuesday the one-month countdown has begun for a Hot Lotto ticket that matched the jackpot numbers in last year's Dec. 29 drawing. The winning ticket was purchased at a Des Moines convenience store and will expire this Dec. 29 if the prize isn't claimed by then, he said.

"It is sad to see this huge prize continue to sit there without being claimed. Someone legitimately won this money and we want them to take it home," Rich said in a statement. "It could make a huge difference in someone's life — or several someones' lives — just in time for the holidays."

Rich noted that the down economy has impacted the unclaimed lottery jackpot as well. Although the majority of recent winners have chosen a lump-sum payment, he said, recipients also can choose to receive their winnings as annualized payments over time.

At the time the big prize was won last December, the estimated annualized jackpot amount was $16.5 million, Rich said. However, that estimate was based upon the cash on hand from the sale of tickets along with the amount in interest that would be generated over time after the lottery invested the money. While the cash value of the jackpot remains unchanged at $10.75 million, current low interest rates mean the annualized jackpot amount has fallen to an estimated $14.4 million, he noted.

"This has been a topsy-turvy story all the way around," Rich said. "But we're hoping that our reminders will cause someone to double-check their ticket and realize they're the big winner before the expiration date."

He said that the lottery does not release a ticket's date or time of sale for security reasons.

"Some information is kept as our way to double-check that the winner is legitimate," he said.

According to the lottery, the winning Hot Lotto jackpot ticket was purchased at the Quik Trip on Des Moines' northeast side. The prize will expire at 4 p.m. Dec. 29 if it isn't claimed by then.

Iowa lottery officials say only a handful of U.S. lottery prizes that were larger have gone unclaimed. The largest recent U.S. lottery prize that expired without being claimed was a $68 million Mega Millions ticket purchased in Brooklyn, N.Y., for a December 2002 drawing.

If the prize expires without being claimed, the money from the jackpot will go back to the 15 lotteries that offer Hot Lotto in proportion to the percentage of sales that came from each state.

At the time the big prize was won last December, the estimated annualized jackpot amount was $16.5 million, Rich said. However, that estimate was based upon the cash on hand from the sale of tickets along with the amount in interest that would be generated over time after the lottery invested the money. While the cash value of the jackpot remains unchanged at $10.75 million, current low interest rates mean the annualized jackpot amount has fallen to an estimated $14.4 million, he noted.

What will the tax man want?

QUESTION:

Will the winner be taxed on the $16.5 million?

Will the winner be taxed on the $10.75 million?

Will the winner be taxed on the $14.4 million?

It depends on how the winner takes their winnings.

If they take the cash value of $10.75 million, they'll be taxed on $10.75 million.

If they take the annuity, they'll be taxed on the actual amount they recieve for this year. Each year when they recieve their annuity, they'll be taxed for that portion then.

Does the winner still have the choice to take a lump-sum?  In some lotteries you only have a limited time to choose the lup-sum.  The winner may be required to take the annuity.

When I read these stories, my first thought is that the winner may have died.  Anyone in the area with relatives who died during the relevant time period who were known lottery players should check carefully to see if their deceased family member had the winning ticket.

"While the cash value of the jackpot remains unchanged at $10.75 million, current low interest rates mean the annualized jackpot amount has fallen to an estimated $14.4 million, he noted."

Sounds like the $10.75 millions set in a desk collecting dust instead of being placed in a bank where it could have at least earned some interest until the winner claimed it.

I always keep my ticket in a safe place!

Holy Smokes - Hope someone steps forward ...... (not lookin' good tho it seems) ...