A WINN-Dixie shopper managed to turn a $30 purchase into a $1 million prize – before thousands of dollars vanished.
Edwin Scroggin came up trumps after buying a scratch-off ticket from a supermarket in Lake City, Florida – around 105 miles from the state capital Tallahassee.
A player scooped a $1 million prize but lost thousands before walking away with the cash[/caption]
The player won the second highest prize on the 300X The Cash game[/caption]
He landed the second-highest prize on the 300X The Cash game, defying odds of one in around 1.95 million and winning $1 million in the process.
But Scroggin faced a choice on how he would like to receive his winnings, per the Florida Lottery.
He opted to walk away with a hefty sum of $695,500.
But the choice that he made meant that more than $300,000 vanished from the amount.
Lotto chiefs revealed that seven prizes worth $1 million are still unclaimed.
Players should check their scratch-off tickets as two prizes worth $15 million each are yet to be claimed.
The game’s prizes range from $30 to $15 million, and the odds of winning are around one in 2.93.
Gamblers who scoop more than $5,000 must pay around 24% in tax to the Internal Revenue Service.
However, Florida is one of the handful of states that do not tax lottery winnings at the state level.
California and Texas are also among the states on that list.
Jackpot winners can choose to receive their prize in a lump sum or in installments, known as an annuity.
The annuity is paid out over three decades, and each payment tends to increase by around 5%.
Financial advisers have warned how gamblers who take the lump sum could be hurled into the highest tax bracket, as revealed by Money Fit.
Top lottery winners in the US
Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.
- Edwin Castro – $2.04 billion, Powerball, Nov. 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, Oct. 11, 2023, in California.
- Unknown winner – $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
- Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida – $1.586 billion, Powerball, Jan. 13, 2016.
- Unknown winner – $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
- Unknown winner – he sued the mother of his child to keep his identity hidden – $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
- Unknown winner – $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
- Cheng and Duanpen Saephan, and Laiza Liem Chao – $1.326 billion, Powerball, April 7, 2024, from Oregon.
- Yanira Alvarez – $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club – $1.05 billion, Mega Millions, Jan. 22, 2021, from Michigan.
- Unknown winner – $842.4 million Powerball, Jan. 1, 2024, from Michigan.
Those who win billions of dollars could face an income tax bill of up to 37%.
Then, they may have to pay a portion of their winnings through state taxation.
Gamblers in New York must pay more than 10% on their fortune.
Wealth advisers have shared the benefits of taking both the lump sum and annuity, but the question has sparked debate.
Financial expert Robert Pagliarini told The U.S. Sun that winners who opt to take the lump sum have to be extra wary of making mistakes.
“The real advantage of [taking] the annuity is that every year you get a new check,” he said.
Last year, Jared James, who created the lotto algorithm Lotto Edge, revealed taking the annuity is among the top five moves winners should make.
He explained it can be easier for players to refuse requests for money simply because they don’t have it in their accounts.
James also revealed having a smaller amount in accounts can make it easier to plan ahead and is less overwhelming.
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.
