I Won $100,000 on a Scratch Card – But Immediately Lost Almost $30,000 of My Winnings

A scratch-off ticket made a man richer, but he couldn’t take it all home.

Mark Douglas bought a $20 scratch-off ticket on a whim and ended up winning the North Carolina lottery.

Douglas’s winning $100,000 ticket is the first big win in a new scratch-off game.

Due to the value of the prize, the winner had to go to the North Carolina Lottery headquarters to claim their money.

Despite the large amount of prize money, after taxes, Douglas will only take home $71,506.

In North Carolina, the tax rate on lottery winnings is 5.25%; the federal jackpot tax is 24%.

He purchased the Instant Millions ticket at a Quick Mart on West Main Street in Jamestown.

The game hit the market in early May and has since produced several winners.

With Douglas’ victory leaving seven $100,000 prizes remaining, there are also three million-dollar prizes left to be won, with only one being claimed.

The new game has an overall 1 in 3.41 probability of returning prize money on the $20 investment.

The $100,000 prize, like Douglas’s win, has odds of 1 in 864,802.5 and the $1 million top prize has odds of 1 in 1,729,605.

Money won from the North Carolina Lottery goes into the state’s education budget, according to the lottery’s website.

“When you play the lottery, you are not only getting a chance to win big, but you are also helping students and schools across the state,” he said. read.

“Money raised by the lottery supports educational programs in all 100 North Carolina counties. Although the money raised each year represents only a portion of the state’s overall education budget, it still makes a difference – see for yourself.”

The resources go to projects such as renovating schools, paying teachers and providing scholarships for pre-school and university students.

RECENT NORTH CAROLINA WINNERS

The state lottery has produced some big-ticket winners in recent months.

David Morris won the Mega Millions prize in the August 1 drawing with a payout of $1 million.

The father of six asked his children to give him some numbers to play, and it was one of his children who provided the winning digits.

After taxes, they will take home $712,501 from the jackpot.

Jack Romans Jr. became successful after deciding to take a chance and buy a lottery ticket.

He bought a $2,000,000 Diamond Deluxe scratch-off game for $20, not expecting to win much, but walked away with $100,000.

The birthday boy took home $71,506 after taxes, but was still pleased with his win.

“I think I was in the right place at the right time,” Romans said.

Lottery winnings: lump sum or annual fee?

Players who win big on lottery tickets typically have a choice to make: lump sum or annual fee?

Both payment methods can affect how much money you receive from your prize.

Annuities are paid slowly in increments, usually over 30 years.

Lump sums are paid all at once, but in smaller amounts since taxes are withheld all at once. This means 24% of your prize goes to Uncle Sam immediately. Many states also tax earnings.

Annuities can give winners time to create the financial infrastructure necessary to receive a life-changing amount of money, but lump sums have the advantage of being taxed only once.

It’s also worth considering inflation when making a choice, as payments don’t adjust to the value of a dollar. This means you will likely receive less valuable money at the end of an annuity.

Each state and game pays 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 differing opinions on the possibility of take the fixed amount or take the annual fee.