I won $5m from a scratch-off lottery ticket after final cancer treatment – but they made me give up $1.3m

A LUCKY lottery player recently beat the odds to land a multi-million-dollar prize pot.

They discovered the big win just in time for their birthday and after their final radiation treatment for breast cancer.

Donna Osborne, a resident of Lancaster County, Pennsylvania, told lottery officials last month that the combination of her birthday and the cancer treatments made the win "bittersweet," per a press release.

The 75-year-old explained she bought the slip for the Monopoly Own It All scratch-off after waiting for a flight to Florida with her daughter.

"We were on our way to see family in Florida when the flight got delayed," Donna said.

"Well, it was delayed so many times, I decided to go home."

After leaving, Donna headed to a nearby Speedway gas station and bought the scratch-off from the convenience store inside.

SLIM CHANCE

The Pennsylvania resident quickly discovered she'd won the jackpot prize of $5 million.

"I could not believe my eyes!" Donna exclaimed.

Nervous that she could be making a mistake, she took the ticket back to the clerk to verify the life-changing sum.

"Well, the clerk said 'It's right!'" the winner recalled.

"If I didn't leave the airport, I would've never bought that ticket!"

Donna called her daughter, who stayed at the airport and flew to Florida, to inform her of the news.

She went to the Pennsylvania Lottery headquarters in Middletown to claim the prize at the end of June and was presented with two options to take the money offered to every lottery winner.

CHOOSE WISELY

They can elect to receive the funds through a one-time, lump-sum distribution, or annuity payments split up over several years.

Donna elected the lump sum, a common choice for winners.

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.

While she got all the money at once, a hefty tax was taken out of the pot for the federal government and the state of Pennsylvania.

The federal government always imposes a 24% on all lottery winnings above $5,000.

States choose their rate, typically based on income tax, and Pennsylvania is set at 3.07%.

Donna ultimately gave up about $1.3 million for taxes but still walked away with $3.6 million.

That's still a considerable return that she said she plans to use for investing and a trip to Alaska.

A lottery winner in North Carolina had a similar experience with their recent $100,000 win — only walking away with just over $70,000 after taxes.

A Kentucky player also lost about half their $1 million prize pot instantly.