Whenever a person or a player plays a lottery game and he or she wins, then it is obvious that he or she is going to get a prize money. Payouts are generally large payments made to a winner of the lottery in divided amounts or installments. The Illinois Lottery conducts many games like Pick 3, Pick 4, Lucky Day Lotto, Mega Millions, Lotto, and Powerball. But the big payments or prize money amounts are handed out to the big jackpot games like Mega Millions and Powerball. The Illinois Lottery states that all the winners must claim their prizes within a year of the winner declaration. In order to pick up a payment, the winners must first understand that for certain amounts of money, they will have to submit some verification data that will require some personal information and photo ID proof. Then, the winners must fill out claiming forms by taking them from one of the many Illinois Lottery Retailers. Then, the winners must submit the form via mail to the Illinois Lottery and wait for the confirmation before they can head out to the Illinois Lottery Claiming Center and take the prize money.
Generally, a small portion of any prize money is given as a donation to the many trusts that the Illinois Lottery works for. Some more is taken as the revenue for the Illinois Lottery itself, for its regular functioning. Small prize money amounts (generally $600 and less) can be claimed by the winner from one of the many Illinois Lottery retailers, but for the others, the above-mentioned procedure must be followed.
The Illinois Lottery Prize Money Payout
It has been understood that the prize money can be claimed by a winner depending on how much he or she has won. Now, payouts are generally given to big games with huge jackpot amounts. Let us take Powerball, the biggest jackpot game in the United States of America, that is also conducted by the Illinois Lottery as an example. The starting jackpot of the Powerball is $40 million! Generally, such a huge amount is not given straight away in a go to the winner. The winner can choose the various jackpot claim options available for the same.
The winner can choose to receive his or her payment in 30 annual payments in one year, or he or she can opt for the one-time straight away payment option. The criteria here is that for big jackpot games, the amount promised should be available in the game pool after that particular drawing to be given away. And hence, the payment is made as payouts. One cannot understand the cash value and the jackpot annuity unless all the ticket sales are finalized. The Federal and Jurisdictional income taxes will always be applied to the Lottery Jackpot prize money options and hence, based on this, the Federal and Jurisdictional income tax departments of the country, provide the payout options for the jackpot games. The same options also apply for the jackpot games of the IL Lottery.