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LUCK was on the side of a lottery player from New York, who scored a $3 million top prize on a scratch-off ticket. However, the player didn’t get to keep all the cash and was immediately forced to say goodbye to over half the prize. A New York lottery player won $3 million from a $10 scratch-off gameGettyGettyLottery players typically don’t get to keep the entire advertised prize[/caption]Anthony Gallo from Batavia, New York – around 35 miles from Rochester – scored big on a $10 scratch-off ticket.The lottery player won $3 million from the New York Lottery’s Triple Jackpot 777 game.The New Yorker bought the lucky ticket at the Speedway at 204-210 West Main Street in Batavia.Although Gallo’s prize was listed at $3 million, he was forced to give up a chunk of the money. The winner opted for a lump sum, choosing to receive the prize as one large payment. When players select the lump sum, a set amount is automatically deducted. Both federal and state taxes are also deducted, leaving lottery winners with much less than the advertised prize. In Gallo’s case, he received $1,386,630 after the required withholdings.Had he chosen the annuity option, he would have received the full advertised prize amount, but it would have been distributed in a series of payments over a specified period.Annuity prizes are also subjected to state and federal taxes. MORE MONEYThe larger the prize won, the more money is lost to taxes and automatic deductions.This was the case for an Ohio lottery player who won a whopping $15 million prize. Identified by lottery officials as Jeanne, the lucky player bought a winning $50 OhioLottery50th Anniversary scratch-off.“I scratched it off and none of the numbers matched because I don’t scratch all the numbers. I scratched like maybe 10 or 12 and I usually know if it’s a winner or not. So, nothing matched, and I scanned it and it said, ‘Winner, see clerk,’” said the winner.She returned to the gas station where she bought the ticket and a shocked employee informed her she’d won $600,000 a year for 25 years.“I was speechless,” Jeanne said. “What I kept thinking is I’m just going to wake up. It’s not real,” said Jeanne.Lottery winnings: lump sum or annuity?Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?The two payout methods can impact how much money you get from your prize.Annuities pay out slowly in increments, often over 30 years.Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.Experts have varying opinions on whether to take the lump sum or take the annuity.Although the advertised prize totaled $15 million, the lump sum payment came out to $7.5 million after the automatic deductions. Jeanne also had to pay state and federaltaxestotaling 28% on the prize, meaning she only took home $5.4 million.The Ohio player intends to pay off her best friend’smortgage with the prize because she had been living with her for the past two years.Jeanne also plans to use the millions to buy ahomeinFlorida.In related news, lottery officials urge players to check their numbers as a $459,000 prize is set to expire in days. Plus, the lottery is warning to check Mega Millions tickets as a $1 million prize goes unclaimed – and it was sold at a gas station.
Jun 24, 2024-11:00
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LUCK was on the side of a lottery player from New York, who scored a $3 million top prize on a scratch-off ticket.
However, the player didn’t get to keep all the cash and was immediately forced to say goodbye to over half the prize.
Lottery players typically don’t get to keep the entire advertised prize[/caption]
Anthony Gallo from Batavia, New York – around 35 miles from Rochester – scored big on a $10 scratch-off ticket.
The lottery player won $3 million from the New York Lottery’s Triple Jackpot 777 game.
The New Yorker bought the lucky ticket at the Speedway at 204-210 West Main Street in Batavia.
Although Gallo’s prize was listed at $3 million, he was forced to give up a chunk of the money.
The winner opted for a lump sum, choosing to receive the prize as one large payment.
When players select the lump sum, a set amount is automatically deducted.
Both federal and state taxes are also deducted, leaving lottery winners with much less than the advertised prize.
In Gallo’s case, he received $1,386,630 after the required withholdings.
Had he chosen the annuity option, he would have received the full advertised prize amount, but it would have been distributed in a series of payments over a specified period.
Annuity prizes are also subjected to state and federal taxes.
MORE MONEY
The larger the prize won, the more money is lost to taxes and automatic deductions.
This was the case for an Ohio lottery player who won a whopping $15 million prize.
Identified by lottery officials as Jeanne, the lucky player bought a winning $50 OhioLottery50th Anniversary scratch-off.
“I scratched it off and none of the numbers matched because I don’t scratch all the numbers. I scratched like maybe 10 or 12 and I usually know if it’s a winner or not. So, nothing matched, and I scanned it and it said, ‘Winner, see clerk,’” said the winner.
She returned to the gas station where she bought the ticket and a shocked employee informed her she’d won $600,000 a year for 25 years.
“I was speechless,” Jeanne said. “What I kept thinking is I’m just going to wake up. It’s not real,” said Jeanne.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
Although the advertised prize totaled $15 million, the lump sum payment came out to $7.5 million after the automatic deductions.
Jeanne also had to pay state and federaltaxestotaling 28% on the prize, meaning she only took home $5.4 million.
The Ohio player intends to pay off her best friend’smortgage with the prize because she had been living with her for the past two years.
Jeanne also plans to use the millions to buy ahomeinFlorida.
In related news, lottery officials urge players to check their numbers as a $459,000 prize is set to expire in days.
Plus, the lottery is warning to check Mega Millions tickets as a $1 million prize goes unclaimed – and it was sold at a gas station.
