Maojun Cheng, from Queens, recently became the latest winner of the top prize for the New York Lottery's Deluxe scratch-off game.

However, his excitement was short-lived when he discovered that he would only receive $6,122,400 of his $10 million prize, due to choosing a single lump sum payment.

Many people are unaware that opting for a lump sum payment can result in a lower payout than if they had chosen to receive the cash in installments.

This is because when receiving a lump sum payment, necessary federal and state taxes are deducted, which can significantly reduce the amount of cash received.

In Maojun Cheng's case, he saw almost 40% of his prize disappear due to taxes and the lump sum payment. This serves as a cautionary tale for anyone lucky enough to win a large sum of money in the lottery or other games of chance. It's essential to consult a financial advisor before making any decisions about how to receive the prize money to ensure that you receive the most favorable outcome.

Recent News