A SCRATCH-OFF ticket has made one man richer, but he was not able to bring all of his prize money home.
Mark Douglas bought a $20 scratch-off and ended up becoming a North Carolina lottery winner.
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Because of the amount of the prize, Douglas had to go to the North Carolina Lottery Headquarters to claim his money.
Despite the large sum of money, after taxes, Douglas will only bring home $71,506.
InNorth Carolina, the tax rate on lottery winnings is 5.25%, while the federal tax on a jackpot is 24%.
He purchased the Instant Millions ticket at a Quick Mart on West Main Street in Jamestown.
Read more on Lotto
Douglas' $100,000 prize is one of the first major wins from a new scratch-off game.
The game first hit the market at the beginning of May and has since produced multiple winners.
With Douglas' win, seven $100,000 prizes remain, and three $1 million dollar prizes are also left to be won, with just one having been claimed.
The new game has an overall 1 in 3.41 odds of a cash prize return on the $20 investment.
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The $100,000 prize, like Douglas' win, has 1 in 864,802.5 odds and the top $1 million prize has 1 in 1,729,605 odds.
Money made from the North Carolina lottery goes towards the state's education budget, per the lottery website.
I won $75,000 on a scratch-off after I saw ‘three bells’ – but I lost $21,000 after answering their question
"When you play the lottery, you aren’t just getting a chance to win big, you’re helping students and schools across the state," itreads.
"The money raised by the lottery supports education programs in all of North Carolina’s 100 counties. While the money raised each year represents only a portion of the state’s overall education budget, it still makes a difference – just see for yourself."
The funds go towards projects like revamping schools, paying teachers, and providing scholarships for preschool students and college students.
RECENT NORTH CAROLINA WINNERS
The state's lottery has also churned out a few high-value winners in the past months.
David Morris won theMega Millionsprize in theAugust 1 drawing for a $1 million payout.
The father of six asked his kids to give him some numbers to play, and it was one of his sons who provided the winning digits.
After taxes, they will be taking home $712,501 of thejackpot.
Jack Romans Jr. struck it big after deciding to take a chance and buy alotto ticket.
He bought a $2,000,000 Diamond Deluxe scratch-off game for $20 not expecting to win much, but walked away with $100,000.
Read More on The US Sun
He took home $71,506 after taxes, but he was still pleased with his gain.
“I guess I was just in the right place at the right time,” Romans said.
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.
