Kroger shopper scoops $1m on lotto but her decision meant almost a third of prize vanished before ever seeing a dollar
A LOTTERY player scored a huge $1 million top prize after she purchased her ticket at a Kroger store.
The 76-year-old woman, from St. Clair County, Michigan, around 50 miles north of Detriot, lost nearly one-third of her winnings due to one decision.
Michigan LotteryA lottery player won $1 million after she purchased a scratch card[/caption]
GettyThe winner had bought her lucky slip at a Kroger store in Michigan (stock image)[/caption]
This winner, who chose to remain anonymous, played a $1,000,000 Deluxe Cash scratch-card ticket.
She bought the lucky slip at a Kroger store on 66900 Gratiot Avenue in Richmond, around 40 miles north of Detriot.
The winner explained that she often played the lottery but quickly realized she had scored the jackpot this time round, according to Michigan Lottery Connect.
“Every time I buy Lottery tickets, I buy $20 worth, so I purchased two $1,000,000 Deluxe Cash tickets on my way out of Kroger,” she said.
“I scratched the tickets when I got in my car, and when I saw I’d won $1 million, I thought to myself, ‘This can’t be real!’”
She explained what next steps she took to verify her win.
“I took the ticket back into the store and scanned it,” she said.
“When I got a message to file a claim at the Lottery office, I knew it was real!
“I have looked at the ticket every day since I won to make sure I’m not just seeing things.”
The winner faced a tough decision when she visited the Michigan Lottery offices to claim her money.
Despite winning $1 million, she was only left with around $693,000 after she chose to receive the lump sum amount.
Large lotto winners are given the choice to receive their money through a one-time lump sum amount or annuity payments.
Annuity payments are split into monthly deposits spread across several decades but the lump-sum option is hit with large taxes and fees.
Despite this, the winner revealed that she would use part of the money to cover her bills and save the rest.
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.
“This prize is going to provide a nice financial cushion for me and my husband,” she said.
A LOTTO MONEY
This winner has not been the only lotto player to get hit with large fees and taxes on their win.
Karen H. from Shelby County, Tennessee, also won $1 million from a scratch card.
“I always believed I would win,” she said.
Karen had to wave goodbye to $240,000 of this win when she went to claim her prize.
Although Tennesee lottery wins are exempt from state taxes, she was hit with federal taxes.
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