Lotto player scoops $100k after spending just a dollar – rule meant quarter of prize vanished without seeing a dime

A LUCKY Lotto player scooped a life-changing $100,000 but saw a quarter of the mammoth prize vanish immediately.

Marlene Hutchins beat the one in 962,598 odds to match all five white balls in a Carolina Cash 5 draw just minutes before the results were revealed.

She nabbed a $1 ticket, fell asleep, and woke to discover she had won big.

“It was 10:49 p.m. and I almost missed it,” she recalled.

Cash 5 tickets must be purchased before 11 p.m. to be eligible for the drawing.

“It’s so much more convenient to play online,” she continued.

“I can do it from my living room or bedroom and it obviously works.

“I jumped up and started screaming.

“I even woke up my kids.”

Mandatory federal and state tax withholdings trimmed a chunk of her winnings off - leaving Marlene with a still not-too-shabby $71,500.

“It’s like I’m going to wake up any minute,” she continued.

“It doesn’t even feel real.”

She said she plans to pay some bills and buy her daughter a car.

PAY UP

The federal government takes 24% of any lottery prize pot worth over $5,000.

States can determine their own tax on lottery winnings.

Some states, such as Florida, do not have a lottery or income tax.

In North Carolina, the tax rate for the lottery is 4.75%, according to the lottery website.

LUM SUM OR ANNUITY?

Some lottery lawyers have told The U.S. Sun that annuity payments are the best option for many winners.

It effectively ensures that if they make a poor decision with the funds one year, they still have continuous distributions for several more.

With the lump sum, while the upfront tax is significant, winners could diversify that money as they see fit and invest to make it grow considerably.

Top lottery winners in the US

Millions dream of winning the lottery and finding fame and fortune. These are the biggest winners in US lottery history.

• Edwin Castro - $2.04 billion, Powerball, Nov. 8, 2022, in California.
• Theodorus Struyck - $1.765 billion, Powerball, Oct. 11, 2023, in California.
• Unknown winner - $1.602 billion, Mega Millions, Aug. 8, 2023, in Florida.
• Marvin and Mae Acosta from Los Angeles, California, John and Lisa Robinson from Munford, Tennessee, and Maureen Smith and David Kaltschmidt from Melbourne Beach, Florida - $1.586 billion, Powerball, Jan. 13, 2016.
• Unknown winner - $1.537 billion, Mega Millions, Oct. 23, 2018, from South Carolina.
• Unknown winner - he sued the mother of his child to keep his identity hidden - $1.348 billion, Mega Millions, Jan. 13, 2023, from Maine.
• Unknown winner - $1.337 billion, Mega Millions, July 29, 2022, from Illinois.
• Cheng and Duanpen Saephan, and Laiza Liem Chao - $1.326 billion, Powerball, April 7, 2024, from Oregon.
• Yanira Alvarez - $1.08 billion Powerball, July 19, 2023 in California.
• Wolverine FLL Lottery Club - $1.05 billion, Mega Millions, Jan. 22, 2021, from Michigan.
• Unknown winner - $842.4 million Powerball, Jan. 1, 2024, from Michigan.

Similarly, a Powerball winner in southern Florida has little time left to claim a $215 million pot, and if they choose the lump sum, they could see about 50% of the prize pot disappear.

An Illinois man who won $100,000 in April from the state lottery also saw at least $28,000 pay state and federal taxes.

For more related content, check out The U.S. Sun's coverage of the $1 million jackpot winner who didn't have to pay taxes.

The U.S. Sun also tells the story of a lottery player who landed a $44 million jackpot but saw half of it forfeited.