New York man won $20 million in lottery, but only had $6.5 million left after paying federal, state and local taxes | The USA Print

García ganó con los números 2, 12, 18, 24, 39 y con la Mega Ball dorada 18.

Garcia won with the numbers 2, 12, 18, 24, 39 and with the golden Mega Ball 18.

Photo: ShutterstockProfessional/Shutterstock

A New York man named Jerson Garcia won $20 million in the lottery, but ended up taking only $6.5 million.s because he had to pay state, federal and local taxes.

The player, who lives in the Bronx, in New York City, hit the jackpot playing with a Mega Millions ticket with which he hit all 5 white balls and the golden ball.

Garcia won with the numbers 2, 12, 18, 24, 39 and with the golden Mega Ball 18.

The player said that this was the first time he had played Mega Millions and told lottery authorities that he planned to use the money to enjoy it with his family.

“I really want to help my mother and get her a house. The dream of every son is to buy a house for her mother, ”García said.

However, while $20 million sounds like a lot of money, the reality is that Garcia was able to take less than half of the prize in the end.

Garcia was given two options: receive the $20 million in 29 annual payments, or take the prize in a single payment, which was $10.6 million.

Garcia decided on the second option.

To this, the IRS collected 25% of the prize. In addition, you are also charged state tax, which adds another 13%.

In New York State, lottery winnings in excess of $5,000 are considered a source of income and therefore are subject to New York state income tax.

Also, if the winner is from New York City, the city considers lottery prizes taxable earnings, so they charge another percentage of tax.

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