A LOTTERY player won a huge $1 million prize after buying her ticket at a Kroger store.
The 76-year-old woman from St. Clair County, Michigan, about 50 miles north of Detroit, lost nearly a third of her earnings because of one ruling.
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This winner, who chose to remain anonymous, played a $1,000,000 Deluxe Cash scratch-off ticket.
She bought the lucky ticket at a Kroger store at 66900 Gratiot Ave. in Richmond, about 40 miles north of Detroit.
The winner explained that she used to play the lottery but quickly realized that this time she had won the jackpot, according to Michigan Lottery Connection.
“Every time I buy lottery tickets, I buy $20, so I bought two $1,000,000 Deluxe Cash tickets on the way out of Kroger,” she said.
“I scratched the tickets when I got in the car, and when I saw I had won $1 million, I thought to myself, ‘This can’t be real!’”
She explained the next steps she took to verify her victory.
“I took the ticket back to the store and scanned it,” she said.
“When I got a message to file a complaint with the Lottery office, I knew it was real!
“I’ve looked at the ticket every day since I got it to make sure I’m not just seeing things.”
The winner faced a difficult decision when she visited the Michigan Lottery offices to claim her money.
Despite winning $1 million, she was only left with around $693,000 after opting to take the lump sum.
Big lottery winners have the option of receiving their money through a lump sum or annuity payments.
Annuity payments are divided into monthly deposits spread over several decades, but the lump sum option is hit with high taxes and fees.
Despite this, the winner revealed that she would use part of the money to pay the bills and save the rest.
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 needed 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 get the lump sum or take the annual fee.
“This award will provide a good financial cushion for me and my husband,” she said.
A LOT OF MONEY
This winner wasn’t the only lottery player to be hit with big fees and taxes on their winnings.
Karen H. of Shelby County, Tennessee, also won $1 million on a scratch-off ticket.
“I always believed I would win,” she said.
Karen had to say goodbye to the $240,000 from that win when she went to claim her prize.
Although Tennesee lottery winnings are exempt from state taxes, it has been hit with federal taxes.
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