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A LUCKY lottery winner has managed to turn a $30 investment into a whopping $10 million.
The New York Lottery player, however, had to immediately give up millions due to a simple decision.
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Sabina Ospino from Jackson Heights, Queens, made millions off a $30 lottery ticket.
She claimed $10 million from the New York Lottery’s 200X scratch-off game, scoring the top prize by matching her numbers to the winning numbers.
The lucky New York resident purchased the winning ticket at Shabaz Deli located at 7403 37th Avenue in Jackson Heights.
Ospino beat the low winning odds of just one in 3.5 million for the 200X scratch-off.
She scored the last of five $10 million jackpot prizes in the game.
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The player, however, did not get to take home all of the prize amount.
Ospino opted to receive a one-time lump sum payment instead of an annuity, which would have provided a series of payments.
The player immediately had to give up nearly $4 million due to her decision, taking home $6,122,400 after required tax withholdings.
The majority of her losses were to federal taxes, which amounted to 24%.
Ospino also had to hand over 10.9% of her prize for New York State taxes and 3.876% for New York City taxes.
FORGOTTEN FORTUNE
A second lottery player was in tears after discovering she had won $1 million from a $1 ticket.
The Illinois woman scored the life-changing cash after purchasing a Lucky Day Lotto ticket at her local grocery store.
“While on my way to visit my Aunt, I made a quick stop at Jewel to pick up a few groceries, and before heading out the door, I grabbed a quick pick Lucky Day Lotto ticket,” she told lottery officials.
The player quickly shoved the ticket in her purse and forgot about it until a few days after the October 20 drawing.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out 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 varying opinions on whether to take the lump sum or take the annuity.
She noticed the ticket in her bag and used her lottery app to see if it was a winner.
“I immediately saw ‘$1,000,000’ on the screen and I was in total shock,” said the Illinois player.
“I scanned the ticket one more time to double-check, and when it showed ‘$1,000,000’ again, I instantly started crying. I thought, ‘This is unbelievable.’”
She plans to travel with the winnings.
“What I’m most excited about is being able to afford annual trips to my favorite place in the whole world: Ireland,” she said.
“The landscape is stunning and I’m thrilled that I can now look forward to these trips every year.”
The player purchased the winning ticket from the Jewel-Osco grocery store in Elmhurst, 18 miles from Chicago.
She matched all five winning numbers – 2, 3, 24, 25, and 28 – to win the $1 million jackpot.
Other lottery players have been fortunate enough to scoop huge prizes.
One winner went to the store to return a carton of orange juice and came back with $315 million.
Plus, an anonymous Powerball winner scored a $1 million prize – but missed out on a huge $409 million jackpot by a single number.
