A Florida woman has claimed a $5 million jackpot from a popular scratch-off game but walked away with just under $3 million after taxes.
Gerry Collins, from Port Charlotte, about 33 miles northwest of Fort Myers, won the prize earlier this month. She bought her winning ticket for THE PERFECT GIFT scratch-off at a Publix store in her city.
The game offers $178 million in cash prizes and only four $5 million jackpots. Collins won one of the last two remaining jackpots, according to the Florida Lottery.
After signing the back of her ticket and submitting a claim form, Collins went to the Fort Myers district office to collect her prize. She had two options to claim her $5 million winnings: take the money as a lump sum or receive annuity payments over several years.
Lottery experts often recommend annuity payments as a way to guarantee steady income over time and reduce tax impact. While Florida does not tax lottery winnings, federal taxes still apply. The government withholds 24% on prizes over $5,000.
By choosing the lump sum, Collins received about $2.99 million after nearly $2.01 million in taxes were deducted. Despite this, it remains an impressive payout from her $20 ticket.
Meanwhile, the second-largest Mega Millions jackpot this year, worth $349 million, was won on March 25 by an unknown player in Illinois. Officials have urged the winner to sign the ticket and consult financial and legal advisors before claiming the prize.
