A 29-year-old woman was surprised when she claimed her US$1,000,000 prize from the Florida Lottery and received only US$640,000. The winner of the scratch off game called 1,000,000 A Year For Life Spectacularwas unaware of an important rule that affects all lottery drawings in the United States.
When Carly Cooper bought a scratch-off lottery ticket at a 7-Eleven store for $50little did I know that I would win US$1,000,000, which is the second largest prize in the game $1,000,000 A Year For Life Spectacular. The draw, which launched in February 2023, promised two grand prizes of US$1,000,000 for life, one of which has already been awarded.
However, after collecting her prize in the Florida Lottery, Carly did not take home the million-dollar prize and “elected to receive his winnings as a lump sum payment of US$640,000”, according to the institution's statement. The reduction in your prize is due to a rule that affects all lottery drawings in the United States: the payment of taxes, since this is the responsibility of the winner and is deducted from the prize received.
How much tax do you have to pay when winning the lottery in the United States?
According to the official Florida Lottery website, The institution must withhold a tax on prizes greater than a certain amount. “Winnings and any taxes withheld are reported in accordance with the Internal Revenue Code and the Code of Federal Regulations on all Florida Lottery winnings with a value of $600 or more,” it states in its regulations. This rule affects both US citizens and foreigners.
“If the winner of a Florida Lottery prize is a U.S. citizen or resident alien, the Internal Revenue Service (IRS) requires that Florida Lottery to withhold 24 percent federal taxes on prizes over $5,000. For non-resident aliens, the Florida Lottery must withhold 30 percent federal taxes from all prizes,” the section states.
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