I won $1m lottery prize while grabbing my daughter a snack – but I immediately lost $350k after a split-second decision

A WOMAN was shocked when she won $1 million on a $10 scratch-off, though a quick decision has cost her $350,000.

She had purchased the lottery ticket while grabbing a bag of chips for her daughter.

Massachusetts State Lottery

EPA/CJ GUNTHER

Amy Kowal of Chicopee, Massachusetts , bought the “$4,000,000 Lion’s Share” scratch-off at the Pride Market on 167 Chicopee Street, according to MassLive .

She told the lottery that she had stopped at the store to buy a bag of Doritos for her daughter.

Kowal learned she won $1 million after scratching the ticket and claimed her prize on August 15, per the outlet.

The Massachusetts mom chose to receive her money as a lump sum rather than an annuity payment .

This one-time payment amounted to $650,000 before taxes .

The Pride Market where Kowal purchased her $10 ticket will receive a $10,000 bonus for selling the winning ticket, MassLive reported.

The “$4,000,000 Lion’s Share” game was released on April 16.

As of August 19, there are still two $4 million grand prizes and three $1 million prizes left to be claimed, per the publication.

LOTTO LOSS

While Kowal won $1 million, she only received $650,000 pre-taxes after she chose to receive her prize as a lump sum.

When they choose a lump sum, lottery winners receive their whole prize as a one-time payment that is only taxed once.

However, when lottery winners choose an annuity payment, they receive their money in slow increments, often over 30 years.

This type of payment can give winners time to financially prepare for acquiring a life-altering amount of money.

Though Kowal lost $350,000 on her prize before taxes, her winnings will only be taxed once.

Many other lottery winners have chosen to receive their prizes as a lump sum.

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 .

Another Massachusetts winner chose a lump sum that cost them millions .

They took home $9.75 million before state and federal taxes after winning $15 million.

One North Carolina grandmother won $4 million , but took home $1,716,009 after taxes and choosing a lump sum payment.

“I think I’m still in a state of shock,” she told Queen City News .

Massachusetts offers a variety of lottery games, such as The Numbers Game, Mass Cash, Mega Bucks, $10,000 Bonanza, and The Instant Game, per the state’s lottery website .

It also has games like Double Cash, Triple Tripler, Big Blue Bonus Cashword, Waves of Cash, and Lucky Roll.

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