The first Michigan Lottery was drawn the week of November 24, 1972. By 2005, the Michigan Lottery had paid out over two billion dollars in state winnings. The state offers several different lotto games, including scratch tickets, pull-tabs and ball games where lottery balls are drawn from a mixer. One of their games, Classic 47 Lotto is drawn every Wednesday and Saturday night. The jackpots for Classic 47 Lotto start at one million dollars.
Jackpot winners of the Michigan Classic 47 Lotto have up to 60 days to request the cash option from the Michigan Lottery. The cash option will be paid in one large lump sum. The cash option also equates to about half of the total jackpot amount once money is removed for state and federal taxes. To win the jackpot, all six numbers must be matched on one ticket. Jackpot winners have one year from the drawing date to claim their prize.
The Classic 47 Lotto payout can also be made annually for a period of 30 years. If the winner does not request the lump sum payout within 30 days, then they will receive the 30-year annual payout. If the winner passes away during the annual payout period, payments continue to the winner's spouse and children in equal payments in accordance with the Michigan Lottery Act. The winner may also leave instructions in a will which can re-direct the money elsewhere. If no spouse, children or will exist, then payments are made to the prize winner's estate.
The Michigan Lottery Board must report all winnings in excess of $600 to the Internal Revenue Service. Aside from that, Michigan Lottery removes 25 percent of the winnings for federal taxes and 4.35 percent of the winnings for state taxes for any prize of $5,000. Jackpot winners will receive a W2-G form for each when they win prize money from the state. Winners will then document their winnings on their federal taxes.
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