I bought a $5 lottery ticket on a whim and scored $50k – my family thought ‘I’d gone crazy’ after what happened next
After a simple suggestion, a woman won a lottery prize.
Her family could barely comprehend what had transpired, and she was in shock at the big payoff.
According to a November 25 statement from the Maryland Lottery, the Baltimore, Maryland, resident was not a regular player but chose to give it a shot at the recommendation of a family member.
The family member informed the woman, who works as a waitress at a nearby restaurant, earlier this month that he would purchase several tickets while driving home from work.
She told him to buy her a ticket with the remaining $5 in her purse, following his advise that it’s enjoyable to occasionally take chances on the lottery.
According to the woman, “I told him I didn’t care which game, any would do,” officials said.
Read More on the Lottery
That night, he gave her the $5 Deluxe Crossword scratch-off game to complete.
When she did, the $50,000 top prize for the game was displayed.
“When I scratched the ticket that night, I was amazed,” she said.
“Totally in shock.”
LUDICROUS LUCK
The woman claimed that her family originally believed she had “gone crazy” when she rushed into the adjacent room to show them the big prize.
She claimed that after they verified it for herself, they “all went a little bit crazy.”
Lottery officials urge Powerball players to check tickets as $200k remain unclaimed and they re from the same state
Officials from the Maryland Lottery verified that the woman bought the scratch-off at the Carroll Gas Station in Baltimore.
If the winning ticket is sold, the gas station will receive a bonus.
The woman must have scheduled an appointment with the Baltimore Lottery Claim Center to pick up the money because the win was more than $25,000.
She would have had to choose between receiving an annuity payment or a lump sum distribution while she was there.
Lottery winnings: lump sum or annuity?
When lottery players win large sums of money, they usually have to decide between an annuity and a lump payment.
The amount of money you receive from your reward may vary depending on the two payout options.
Annuities typically pay out over a 30-year period in gradual increments.
Because taxes are withheld all at once, lump sum payments are made all at once but in smaller amounts. In other words, Uncle Sam immediately receives 24 percent of your award. Winnings are also taxed in many states.
While lump amounts have the advantage of just being taxed once, annuities can provide winners time to build up the financial infrastructure needed to receive a life-altering quantity of money.
When choosing, it’s also important to take inflation into account because distributions don’t change in value with the dollar. This implies that when an annuity comes to a conclusion, you will probably receive less valuable money.
It’s best to confirm payment terms with your state lottery as each state and game has distinct prize payout policies. You can evaluate the advantages and disadvantages of each choice with the assistance of a financial expert.
There are differing views among experts over whether to take an annuity or a lump sum.
GONE IN A FLASH
Annuity payments distribute the funds over a number of years with little tax consequences.
Although the winner can get the entire amount at once, there are substantial upfront taxes associated with the lump payment.
All lottery winnings above $5,000 are subject to a 24% federal tax, with state rates determining the tax rates.
The rate in Maryland is 8% for non-residents and 8.75% for state citizens.
This implies that the woman will leave with about $33,625 rather than $50,000.
About $16,375 is the total amount of taxes deducted.
Read More on The US Sun
After winning $2 million from a scratch-off ticket, a Michigan player had to pay $700,000 in taxes right away.
A man in Massachusetts who won $1 million also lost $300,000 right away as a result of his choice.
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