A LUCKY lottery winner won $1 million in a recent scratch-off, but only managed to take home a portion of the prize.
Florida Lottery officials confirmed Friday that Anita Ervin, 61, claimed part of her $1 million prize after winning the $5,000,000 CASHWORD Scratch-Off game.
Ervin, of Tallahassee, purchased his winning ticket at the Fair Price Food Store at 440 East Paul Russell Road, officials he said.
Admission is just $20 and involves scratching twenty boxes to reveal several letters.
To win the game, players must cross off the boxes in Game #1 and Game #2 to match any letters, according to the Florida Lottery.
If three or more words are matched in any game, there will be corresponding prizes.
With his lucky ticket, Ervin won $1 million.
She recently claimed her winnings at the Florida Lottery headquarters in Tallahassee.
However, she didn’t take home the entire prize.
The lottery winner chose to take home their winnings as a single, lump-sum payment.
This resulted in a final prize of $780,000.
She wasn’t the only one to win big with the lucky ticket.
The Fair Price Food Store that sold her the game also received a $2,000 bonus commission from selling the ticket, according to lottery officials.
Lottery players in the state of Florida only have 60 days to claim their scratch-off game winnings.
Those who won big in the draw have 180 days to claim their winnings.
When claiming a grand prize, there are two main payment options: annual payments and a one-time cash payment.
Annual payments allow winners to take home the prize in a series of payments over 30 years.
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 establish 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.
Meanwhile, the one-time payout allows winners to take home the majority of their winnings immediately.
Many choose this option because the prize is only taxed once.
Importantly, all winnings are subject to tax, diminishing this grand prize.
For U.S. citizens or resident aliens with social security numbers who receive a prize greater than $5,000, Florida Lottery officials withhold 24% of the federal withholding tax.
US citizens who do not have a social security number who collect winnings of $600 or more will have 30% of their winnings withheld for federal taxes.
Non-resident aliens are also subject to 30% withholding on all prizes.
Experts recommend consulting a financial advisor before receiving any lottery prize to better manage and protect your winnings.
Florida Lottery officials did not immediately respond to the US Sun’s request for comment.
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