Small win leads to a big win - $100,000 - for Wake County man

11/11/2021 08:33 - Sheila I.

@ncel. I was asking about the dollar a winner receives before and after taxes, taking $10 million as a annuity payment? ThanksNC Lottery
Hi Sheila! If a winner wanted annuity payments of $10 million, they would receive a payment of $500,000 each year for 20 years, and that payment would be subject to tax withholding each year. By law, we are required to withhold 24% federal and 5.25% state taxes on prizes. Depending on each individual's unique financial situation, a person's tax obligation could be more or less than what was withheld. Hope this helps!

11/10/2021 06:49 - Sheila I.

@ncel. If a person win the $10 million prize on the Colossal and choose the annuity payment, how much is the payout before and after taxes? ThanksNC Lottery
Great question, Sheila! Generally, scratch-off games with top prizes of $1 million or more give players the option to claim annuity payments over many years or receive their prize as a lump sum. The federal tax withholding would be the same, it would just either be taken out all at once or from each payment over the 20 years. Lump sums are approximately 40% of the prize, which accounts for taxes and the interest that the prize would accrue over the 20 years if paid in annuity. Hope this helps!