AN extremely fortunate lottery player has landed not one, but two million-dollar jackpots.
The man made a simple mistake that resulted in a life-changing amount of money.
A Powerball player has landed two $1 million wins (stock image)[/caption]
Paul Corcoran (pictured) walked away a millionaire[/caption]
Earlier this month, Massachusetts resident Paul Corcoran accidentally bought separate tickets for the July 9 Powerball drawing, per a release from Mass Lottery.
Corcoran explained to lottery officials that he’d initially bought one and thought that the drawing had already happened.
That led him to buy another multi-draw ticket that also included the drawing for July 9 on it.
Shockingly, both tickets for the same drawing matched all five white balls 5, 9, 25, 28, and 69, missing a red Powerball of 5.
This meant that Corcoran won two prizes worth $1 million each.
The man told officials that the win felt good, but he doesn’t have any plans for how to use the funds just yet.
Given that the prize was well over $103,000, Corcoran had to claim his wins in person at Mass Lottery Headquarters in Dorchester.
He did just that on July 11, and was presented with two options to receive the cash — a one-time, lump sum distribution, or annuity payments spread out over several years.
WHAT’S BEST?
Lawyers and lottery experts have debated over which option is best for some time.
An attorney who’s represented several lottery winners previously told The US Sun that the annuity payments were best as they provide a safety net in case less-than-optimal financial decisions are made.
Akshay Khanna, CEO of Jackpot.com, also emphasized in an exclusive interview that annuity payments almost “guarantee wealth” with the consistent money coming in yearly and less tax implication.
Still, Khanna argued that with the right steps from winners, including getting in contact with a financial advisor, the lump sum “offers higher expected returns over the long term.”
Corcoran, like many players, selected the lump sum distribution.
This meant that a significant amount of money vanished to taxes before he saw any of it.
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.
TAX TURMOIL
The federal government implements a tax rate on all lottery wins over $5,000 of 24%.
States decide their own, and Massachusetts is 5%.
While their are other details to consider that could make the deductions greater, at least $580,000 was taken out of the wins.
That means Corcoran walked away with about $1.42 million at most.
When he files taxes this upcoming spring, he could still owe depending on what tax bracket the money made him move up to.
Either way, the Massachusetts man beat considerable odds.
Some considerably large jackpots are also still without identified winners in some states.
In Wisconsin, officials are still searching for the rightful owner of a $2 million Powerball ticket.
A $1 million Mega Millions ticket in Washington is also still unclaimed.
