A LUCKY lottery winner won $1 million in a recent scratch-off game but was only able to take home a portion of the prize.
Florida Lottery officials confirmed on Friday that Anita Ervin, 61, claimed part of her $1 million prize after winning the $5,000,000 Cashword Scratch-Off game.
1
Ervin, from Tallahassee, purchased her winning ticket from Fair Price Food Store at 440 East Paul Russell Road, officials said.
The ticket cost only $20 and involved scratching off twenty boxes to reveal various letters.
To win the game, players must scratch 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 either game, there are corresponding prizes.
Read More on the Lottery
With her lucky ticket, Ervin won $1 million.
She recently claimed her winnings at the Florida Lottery Headquarters in Tallahassee.
However, she didn’t take the entire prize home.
The lottery winner chose to take home her winnings as a one-time, lump-sum payment.
Most read in Money
IN THE MONEY Walmart manager earns $500k after company's big change - he 'almost fainted'
LUCKY NUMBERS Lottery warning to check tickets for unclaimed $215 million Powerball jackpot
H-ARB GOODBYE Arby’s says ‘thank you’ in sad sign confirming restaurant closure
MONEY MAKER Walmart shoppers have less than week to claim $500 - you just need old receipt
This resulted in a final prize of $780,000.
But she wasn’t the only one to win big with the lucky ticket.
How maths genius ‘hacked’ lottery with perfect number formula to win 14 TIMES - before he ended up bankrupt
Fair Price Food Store which sold her the game also received a $2,000 bonus commission for the sale of the ticket, according to Lottery Officials.
Lottery players in the state of Florida only have 60 days to claim their prizes from scratch-off games.
Those who have won big in a drawing have 180 days to claim their winnings.
When claiming a big prize, there are two main payout options: annual payments and a one-time cash payment.
Annual payments allow the winners to take home the prize in a series of payments for 30 years.
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.
Meanwhile, the lump sum payment allows the winners to take home most of the winnings right away.
Many opt for this option as the prize is only taxed one time.
It is important to note that all winnings are subjected to taxes, shrinking that big prize.
For US citizens or resident aliens with a social security number collecting a prize of over $5,000, Florida lottery officials withhold 24% of federal withholding tax.
US citizens who do not have a social security number collecting winnings of $600 or more will have 30% of their prize withheld for federal taxes.
Non-resident aliens are also subjected to 30% withholding on all prizes.
Read More on The US Sun
Experts recommend consulting with a financial advisor before collecting any lottery prize to better manage and protect your winnings.
Florida Lottery officials did not immediately respond to The U.S. Sun's request for comment.
