Illinois Powerball winner may remain anonymous but faces tax cuts on lump-sum option
The Illinois Powerball jackpot winner can request anonymity under state law, but choosing a lump-sum payout would reduce the prize by over $100 million after federal and state taxes.
A Powerball ticket sold in Quincy, Illinois, matched the numbers drawn on Wednesday, creating a $1.04 billion prize – the eighth-largest in the game’s history. The winner must file a claim by Oct. 11, 60 days after the drawing, and can elect either a lump-sum cash payment or an annuity paid over 30 installments.
If the cash option is chosen, the Illinois Lottery estimates a pre-tax value of $450.5 million. A mandatory 24 percent federal withholding would lower the amount to $342.4 million, and an additional 13 percent in federal taxes would bring it to $283.8 million. Illinois imposes a 4.95 percent state tax, further reducing the payout by $22.3 million.
The annuity alternative allows the winner to receive payments over 29 years and delays public disclosure of the winner’s identity until Aug. 12, 2027. Illinois law permits anonymity for prize claims exceeding $250,000 if the claimant files a request on the claim form; otherwise, the winner’s name, city and prize amount become public record.
State lottery officials do not release winners’ addresses or phone numbers. Nationwide, 23 states provide some form of winner anonymity, with full anonymity available in Delaware, Kansas, Mississippi, Missouri, Montana, South Carolina and Wyoming, among others.
The winning ticket was purchased at a Hy-Vee Gas Fresh & Fast convenience store. The jackpot has since been reset to $20 million for the next drawing.