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He won the United States lottery, with 30% deducted from his prize due to a rule

AdminMarch 11, 2024

0 70 2 minutes read

What would you do with US$1,000,000? Well, that was the number A man from Massachusetts, United States won after playing the state’s lottery. This player’s luck was already proven, because only a month ago he bought a ticket in the same store with which he had already won the prize. However, in the end, Due to the decision he took, the amount he was entitled to was significantly reduced.

Last February, Davison Alves Martins decided to try his luck by buying a ticket for the Million Dollar Extravaganza lottery, according to Massachusetts lottery authorities. To participate, he paid US$50 to the family farm store in Worcester, He chose ticket number eleven because it is his lucky number, and he turned out to be very lucky indeed.

This guy won US$1,000,000. However, what he took home was very little. And he decided to opt for the full amount, which meant he had to pay taxes, reducing his prize to just US$650,000. Yet it is still an important figure that no one wants to deny and in the case of Davson’s dedication to carpentry, it has helped him gain more peace of mind about his future and the future of his family.

Winners of high lottery prizes in the United States have the option of receiving the money in annual payments or immediately. In this case, Divson would have received US$50,000 over twenty years. however, Because he decided he wanted the whole million, He had to pay federal and state taxes on his earnings. Remember that federal tax cuts the prize by 24 percent, while, in the case of Massachusetts, an additional 5 percent is charged.

The winner had to pay taxes on his prize.

Photo:Massachusetts State Lottery

Annual Payment or Full Payment, Which is Better When Winning the Lottery in the United States?

The decision is personal though, as everyone knows their needs and wants, financial expert Michael Liersch told the media. Surya K Big money winners should consider deferring their prize For annual payments.

This is because people are less likely to make good investments if you get large sums of money and profits last longer. But if you opt for a check every year, the first few might waste it, but then they’ll realize they need to make better decisions. Besides, If they opt for annuity they will get more tax benefits.

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