A LUCKY lottery player avoided paying tax on his million-dollar winnings thanks to a crucial aspect of the game he played.
They were left in shock after discovering that all six numbers on their ticket matched those selected in the April 10 draw.
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Former high school teacher Billy Arnold told authorities at the Virginia Lottery which he shouted in surprise when he realized the numbers were identical in the state’s Bank a Million game.
In a similar setup to Powerball, the game requires players to select six numbers and a Bonus Ball.
To win the top prize of $1 million, players must match all six regular numbers, or five, and the Bonus Ball.
Arnold perfectly matched the drawing selection of 5-9-13-15-21-28, except for the missed bonus ball from 33, but he didn’t need it.
The retired teacher and coach, who lives in Chesapeake, purchased his ticket at a 7-Eleven gas station in the same city.
He told lottery officials he plans to use some of the money to buy a new Harley-Davidson motorcycle.
Arnold beat one in 3.8 million odds in the Bank a Million game to win the $1 million prize and walk away with the full amount, relatively atypical compared to most wins in the United States.
The federal government has a set tax rate of 24% on lottery winnings.
Many states also set their taxable percentages on premiums.
This means that some players see almost half of their earned money disappear if they opt for a lump sum distribution.
So how did Arnold avoid this?
In the Bank a Million game, the Virginia Lottery states that winning amounts of $1 million, $500,000 and $250,000 will be pre-taxed.
This means that the prizes started at a higher value and employees have already paid taxes so that the prize values are true to their listing.
Anyone, like Arnold, who won $1 million would actually walk away with $1 million.
TAX TIMES
Considering the 24% federal tax and the 4% Virginia state lottery tax on any win over $5,000, the $1 million total would have to be about $3.57 million.
Some may argue that it is better to have the money pre-taxed in lottery games, considering that winners would always realize that the value of the prize they won is exactly what they are receiving.
As The US Sun previously reported, a young winner in North Carolina took the lump sum earlier this month for a $2 million prize.
Top US Lottery Winners
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, November 8, 2022, in California.
- Theodorus Struyck – $1.765 billion, Powerball, October 11, 2023, California.
- Unknown Winner – $1.602 Billion, Mega Millions, August 8, 2023, Florida.
- Marvin and Mae Acosta of Los Angeles, California, John and Lisa Robinson of Munford, Tennessee, and Maureen Smith and David Kaltschmidt of Melbourne Beach, Florida – $1.586 billion, Powerball, January 13, 2016.
- Unknown Winner – $1.537 Billion, Mega Millions, October 23, 2018, from South Carolina.
- Winner unknown – he sued his child’s mother to keep his identity hidden – $1.348 billion, Mega Millions, January 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 Álvarez – $1.08 billion Powerball, July 19, 2023 in California.
- Wolverine FLL Lottery Club – $1.05 Billion, Mega Millions, January 22, 2021, from Michigan.
- Winner unknown – $842.4 million Powerball, January 1, 2024, from Michigan.
He saw his earnings fall to $858,006 after taxes.
It’s still a considerable return on the scratch card price.
A winner in Michigan who won a $1 million Powerball jackpot also saw a drop in the money he took home.
They only came home with about $500,000 after taxes.
For more related content, check out The US Sun’s coverage of a $1 million lottery winner who discovered his prize after a puzzling message.
The US Sun also tells the story of a $2 ticket a worker bought on a whim that made him $2 million.
This story originally appeared on The-sun.com read the full story
