5 days ago
Lottery player wins $1 million prize in Ohio. Why is she only getting $360,000
An Ohio woman won a huge lottery prize but will take home less than half the winnings.
The anonymous woman played the $50 VIP Millions scratch-off game and won $40,000 a year for life, according to the Ohio Lottery.
The woman chose to receive the cash one-time lump sum of $500,000 instead of the yearly amount for the full prize, the lottery said.
After state and federal taxes, the $500,000 prize was reduced to $360,000.
According to any winning over $5,000 is subject to a 24% IRS claim. In addition, state and local taxes can claim up to 15%.
'However, since the highest federal tax rate is 37%, you may still owe more when it's time to file your taxes,' the site said.
Giving part of your winnings to friends and family members can also come with a price. Any gift over $19,000 may be subject to a gift tax, according to the website.
