Even if claimed, winner gets $2M less due to fallen interest rates
DES MOINES, Iowa — 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.
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?
Yes, I think someone actually does. The figure is not steady, cause one major jackpot can really inflate the loss.
It's such a shame, all this good money going to waste.
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?
Holy Smokes - Hope someone steps forward ...... (not lookin' good tho it seems) ...
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.
The Iowa lottery figures it was somebody passing through the state since the ticket was purchased at a convenience store/gas station near the interstate highways.They think it was a spur of the minute purchase and the winner doesn't even know that he/she has the winning ticket.Personally,I think the lottery should hold another drawing and the holders of tickets from the original drawing date should be the only ones to have a chance at it.If nobody wins it then they should add it to the current jackpot and let anyone who buys a ticket for the current jackpot have a chance at it.Dividing up the money between the states is nothing more than theft in my eyes.
To answer your question,Yes,the winner is still able to choose how he is paid.Iowa doesn't have one of those goofy rules that says you have to declare how you want to be paid when you purchase the 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.
guessing its someone that was just passin through,
used to buy tix everywhere when i was on the road.
then found it not so easy to check them, i did't have internet then,
just like i did't have it last night and today til. 1500 hrs.
a cold reminder of "the good old days"
I'm sure it's somewhere earning interest, just not for the winner. :/
I always keep my ticket in a safe place!
I keep mine in my wallet.And it's signed so nobody else can cash it.
I bet the person who purchased this ticket was either an over-the-road truck driver who makes very little money (probably tossed ticket into log book or pile of receipts) or a youngster ashamed or feeling guilty about playing the lottery who hid ticket and has no clue ticket is a winner. In any case, this sucks! Or it is someone who plays the lottery and died and better half does not believe in playing the lottery (so ticket was probably tossed out).
I hope the winner steps forward before it expires.