 prize. But her calculated decision on how to receive her winnings cost her dearly, as she stands to lose more than $5million (£3.9m) due to taxes. Identified only as McDonnell, the fortunate winner defied odds of 1 in 6.48 million to secure the top spot in Ohio's highly sought-after Billion scratch-off game. Each ticket for the game comes at a price of $50. In a departure from the norm, McDonnell opted for an annuity payout rather than a lump sum. While this decision ensures a consistent flow of funds over time, it comes at a significant cost. Instead of receiving the full $20million upfront, she will be paid $1million annually for the next 20 years. However, the tax implications of this choice are substantial. After federal and state tax deductions, McDonnell's annual earnings will be approximately $720,000. Over the two decades of the annuity payout, these deductions will accumulate to a loss of more than $5 million, The rationale behind choosing the annuity option often stems from a desire for controlled financial management. Many past lottery winners have experienced financial difficulties shortly after their windfall, prompting some to opt for structured payments to prevent squandering their newfound wealth. McDonnell purchased her winning ticket from the Memphis Shell station in Cleveland. The station will be rewarded with a substantial $100,000 bonus. For those who missed out on this remarkable win, the Ohio Lottery site's press release confirms that three prizes of $1million a year for 20 years are still up for grabs. Tickets for the Billion scratch-off game have){kind=link}
A woman from Brooklyn, New York, beat the odds and secured a $20million lottery prize – but her choice of opting for an annuity payout to carefully manage her newfound wealth has cost her
A woman won $20million in the lottery – but a choice meant she loses a quarter of the winnings.
A Brooklyn woman has emerged victorious in Ohio’s Billion scratch-off game, claiming a staggering $20million (£15.7m) prize. But her calculated decision on how to receive her winnings cost her dearly, as she stands to lose more than $5million (£3.9m) due to taxes.
Identified only as McDonnell, the fortunate winner defied odds of 1 in 6.48 million to secure the top spot in Ohio’s highly sought-after Billion scratch-off game. Each ticket for the game comes at a price of $50.
In a departure from the norm, McDonnell opted for an annuity payout rather than a lump sum. While this decision ensures a consistent flow of funds over time, it comes at a significant cost. Instead of receiving the full $20million upfront, she will be paid $1million annually for the next 20 years.