The two winners are a partnership, having agreed to split the prize before the winning ticket was purchased at a Speedway gas station outside of Chicago. They want to remain anonymous, only to say they were “over the moon” to win the jackpot, lottery officials say. Despite winning the award almost two months ago, the winners have worked with legal and financial advisors to support the claim process. They chose to receive a reduced lump sum at the “current market value” of $780.5 million, rather than receive the full “advertised” amount as 30 annual payments over 29 years. Despite the reduced payment cost and upfront tax, the lump sum payment is the most frequently chosen payment. Also suggested by “Shark Tank” investor Kevin O’Leary: “More money upfront means more money to invest and grow” over time, he says. After taxes, the total payout comes to about $453 million between the two winners, or $250 million each. That’s because with the lump sum option, the $780.5 million payout would be subject to federal income tax of 37 percent, the highest rate for top earners. An Illinois state tax of 4.95% will also be applied to total earnings, which cuts another $38.6 million. The odds of winning the Mega Millions jackpot are 1 in 302.5 million, according to MegaMillions.com. Subscribe Now: Get smarter about your money and your career with our weekly newsletter Don’t Miss: The Fed Just Made a ‘Jumbo’ 0.75% Rate Hike—Here Are 4 Things That Will Be More Expensive Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”
