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A LOTTERY player hit the jackpot before suddenly losing a quarter of his prize.
William Bon Viso, of North Carolina, won big after continuing a family tradition.
William Bon Viso won a quarter of a million dollars before he suddenly lost a quarter of that amount[/caption]
He received scratch cards as a Father’s Day present from his aunt but opted to test his luck after being given some money, per the North Carolina Education Lottery.
Bon Viso spent just $5 on the 20X The Cash game and won the $250,000 prize.
He defied the odds of one in 1.4 million to win the amount.
But, more than $70,000 vanished before he took home a dime.
State and federal taxes were wiped from the prize and he walked away with $178,751.
Lottery prizes in North Carolina are taxed at a rate of 4.75% on the state level.
Jackpots over $5,000 are taxed at 24% by the federal government.
Despite the huge deduction, Bon Viso was thrilled by his win.
“This is beyond a dream come true,” he boasted.
“I still can’t believe I am here right now.”
Bon Viso opened up on his plans on how he would like to spend the money.
He suggested he would set aside some for investment but suggested he might take a trip.
Most lottery winners endure the same fate of losing a hefty amount before walking away with the prize.
Gamblers who win big in New York face a 10.90% tax on their prize.
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.
It’s one of the heftiest tax rates across the country.
Winners in Maryland and Washington DC are subject to an 8.75% and 8.5% rate respectively.
Oregon and New Jersey are among the top five states with the highest lotto tax rates.
But winners in California and Florida don’t face a state lottery tax.
North Dakota, Mississippi, and Pennsylvania also have relatively low taxes.
