A LOTTO player in New York has won a life-changing $5 million jackpot.
But a large chunk of his earnings went away before he even received any money.
William O’Donnell of Long Island bought his ticket at a convenience store.
It was a Cash X100 scratch card
Came from Maakrupa Super Stop located on Montauk Highway 200A.
However, high taxes meant he lost $1,745,000.
TAX TIME
Across the country, lottery winners have to pay the federal government a hefty 24% tax on lottery winnings.
However, many states charge additional taxes on prizes.
In New York State, there is a 10.90% tax on the prize.
Because William’s award came at once, all of these taxes were withheld at once.
Together, they totaled almost US$2 million.
The remainder that was left was $3,255,000.
That’s almost a third less than the original prize, but it still represents a substantial increase in cash.
While many New York scratch cards offer annual fees, which are paid over time, it’s unclear whether the Cash X100 game does.
The US Sun has reached out to the New York Lottery for more information.
Responsible gaming
Remember to gamble responsibly
A responsible player is someone who:
- Set time and monetary limits before playing
- Only games with money they can lose
- Never chase your losses
- Don’t play if you are upset, irritated or depressed
- National Problem Gaming Council – https://www.ncpgambling.org/
- Game Aware – www.begambleaware.org
For help with a gambling problem, call the National Gambling Helpline at 1-800-522-4700 or go to ncpgambling.org/chat
MORE LUCK
A North Carolina lottery winner recently lost more than $110,000 of her $390,000 prize.
That state has a much lower lottery tax than New York, but it still took thousands of dollars out of the prize.
Your tax rate on earnings is around 5%.
An Arizona Powerball player has yet to claim the state’s $1 million prize.
A whopping $1.13 billion prize went unclaimed in New Jersey.
Several large prizes have gone unclaimed in Connecticut.
This story originally appeared on The-sun.com read the full story
