McDowell County thrift store worker to buy dream home with $4 million prize

March 20, 2019 Posted by NC Lottery at 3:10 PM

Larry Fitzgerald of Nebo said he plans to buy his dream home after he won a $4 million lottery prize.

“This feels like a dream come true,” Fitzgerald said. “I want to buy a house that has plenty of land so I have room to restore my classic cars.”

The thrift store worker’s good fortune happened Monday evening when he made his daily stop at Samirs on Burma Road in Nebo. While there, he bought a 100X The Cash scratch-off ticket.

“I couldn’t believe it,” Fitzgerald said when he realized he won. “This is life changing. It feels good. Real good.”

He claimed the prize Tuesday at lottery headquarters in Raleigh. He had the choice of taking a $4 million annuity that has 20 payments of $200,000 a year or a lump sum of $2.4 million. He chose the lump sum. After required state and federal tax withholdings, he took home $1,698,006.

“I figured I’d win sooner or later,” Fitzgerald said. “I’m glad I finally did.”

Players can enter their “X The Cash” scratch-off tickets into one of four second-chance drawings for a chance to win $50,000. The deadline to enter the first drawing is March 31.

Ticket sales from games like 100X The Cash help the lottery raise more than $650 million a year for education. For details on how $2.6 million in lottery funds made a difference in McDowell County last year, click on the “Impact” section of the lottery’s website, https://www.nclottery.com.

36 COMMENTS

3/25/2019 11:00 - Berry B.

Way to go Mr L.F.,Plzs Injoy your Blessings!!

3/25/2019 10:31 - Willie K.

Congrats Larry/ enjoy your winnings

3/25/2019 08:51 - Denver G.

One more tidbit. If you win/earn lets say $200,000 from the NCEL and they withhold 30% in taxes ($60k) for the IRS and give you a W2G form. When you file your taxes you might be in the 35% bracket tax bracket. You would owe the IRS $10k more. Be glad the NCEL withholds taxes. Imagine if your employer did not withhold taxes on you income every week.

3/25/2019 08:41 - Denver G.

As far as having to pay additional taxes on large amounts, that is possible. I have had the pleasure of receiving several W2G forms from the NCEL for winnings/earnings over the years. I was glad they took out 30%. My Income from the NCEL never changed my rate or put me in a higher tax bracket, even the $5000 wins.

3/25/2019 08:33 - Denver G.

Well said Mike. To anyone who thinks that you are taxed twice on your winnings , you are over thinking it and you are wrong!!!. Whether you work anywhere and earn money you will get a W2 form with taxes taken out. You may or may not get money back from the IRS. You might owe more because YOUR employer did not take enough out. Think of the NCEL as your employer. The NCEL will withhold taxes for the IRS and give you a W2G form for you to use when you file. The NCEL does not take/keep part of your earnings.

3/25/2019 06:28 - Mike S.

Taxes Part 2 - @Beverly - You mention using last year's returns to figure out the total amount of taxes due, good idea, but it's your responsibility to either pay the additional taxes ahead (to avoid possible penalties) or pay it when your file your taxes. There are many tax estimators that will get you close to the total taxes due. Using my financial program, if I won $4M ($2.4M lump sum), I would owe an additional $250K - and take responsibility to pay it! If a winner is not savvy enough to do all this see a tax professional - period.

3/25/2019 06:26 - Mike S.

Taxes Part 1 - @Beverly - Winners are NOT taxed twice, NOR is the NCEL responsible for an individual's tax situation - they withhold the minimums required by law. Winning a large amount may or may not change your tax bracket, hence having to owe more taxes than were withheld. This is no different than if you receive a large bonus from work that puts you in a different tax bracket, the employer withholds taxes based on your W-4 withholding - it's not your employer's responsibility to figure out your taxes for you. See Eric C.'s comment about a $1K win changed his taxes.

3/24/2019 09:51 - Beverly R.

@NC Lottery: I still say winner is taxed twice - NCEL withholds taxes and then winner has to pay additional taxes when he files income tax return. I'm not a math whiz but that is two times you have to deduct taxes from your winnings. That's why I suggested that it would be fairer if the govt allowed NCEL withhold an additional 10-25%, based on the amount won, and call it a day with regards to taxation of lottery winnings. Or, have winner present last year's tax return when he comes to collect winnings. Based on last year's tax bracket, NCEL deducts additional percentage from winnings and winner leaves with a check free and clear and does not have to worry about consulting tax professional (more money out of winner's pocket even for smaller amounts like 5k) and worrying about how much MORE the govt will grab come April 15.

3/23/2019 06:40 - SHERRY L.

Have a wonderful life. And build your dream car

3/23/2019 06:36 - Lavanda H.

CONGRATULATIONS Larry!!!..everybody deserves a chance to win and I'm happy for him and all who do win. But...... Don't get me wrong, Larry or anyone would be grateful and humble for the winnings received but they really chopped up his check. I can see exactly what Beverly is talking about. I don't care how NCEL people try to explain it, it's unfair. He win 4 million...then NCEL take (??) Leave 2.4 million for Larry, then the govt take (??) Taxes leaving Larry with $1,698,006. We know the government has to tax but why does the NCEL has to take so much? Good luck everyone!! NC Lottery
Hey Lavanda, The lottery doesn't take a part of the prize off the top. The difference between the lump sum and the annuity would be earned on interest over the course of 20 years and used to pay out the prize to the winner.

3/23/2019 02:15 - Sarah B.

@BEVERLY R: Hey Beverly! Winners are not double-taxed on lottery winnings. By law, we are required to withhold the minimum state and federal taxes. Depending on each individual's unique financial situation, a person's tax obligation could be more or less than what was withheld. That's why we recommend winners consult with a tax professional when they claim.

3/23/2019 12:18 - Gregory F.

Congratulations on your blessing. That's a lot of money but north Carolina takes a lot taxes either way. In Florida they take a lot less taxes. That's why a lot of people move their when they retire. Wish I could win something big where I live but it hard to win when there's nothing here to win big. B

3/23/2019 12:09 - Maurice H.

Conggrats

3/23/2019 10:19 - Selma P.

How do you enter the X The cash? Or will the ticket be entered automatically?NC Lottery
Hey Selma, When you scan a X The Cash ticket to collect Lucke-Rewards points, you will also be automatically entered into the second-chance drawing for that ticket. You should receive a confirmation message when you scan. You can also see how many entries you have for any drawing over on the "Draws" page. Hope this helps!

3/23/2019 09:56 - Beverly R.

Not fair for the govt to tax you twice. NCEL takes out taxes and THEN the you are taxed again when you file income tax. The little guy always get the poop end of the stick. It would be fairer if the govt would just allow NCEL to increase the amount of taxes they take out, maybe an additional 10-25% depending on amount won so that the winner is free and clear, i.e. he doesn't have to pay anymore in taxes on this win. Geez, the average Joe can't get a break. Most of the folks who win aren't millionaires or even doing very well financially, just people struggling to get by. Why must the govt nickel and dime you for every penny? You beat incredible odds to win some money, get about half or less of it after taxes and THEN have to pay MORE taxes in April. Not right.

3/23/2019 08:59 - Mary G.

It's not all about the taxes, which as we see, are substantial. It's about the annuitized payments. We, if we're lucky enough to win, will pay taxes no matter what. But if you choose the annuity, you will actually, over time, collect the entire sum, not the cash pay-out. That is not being short-changed; that's the way annuities work. Whether our taxes increase dramatically shifts with each incoming administration. There's no way to see into the future; perhaps that's why so many choose the lump sum - they get to enjoy it now. And by doing so, they leave a lot "on the table." Still - it's their choice. Remember, two things are certain - death and taxes.

3/22/2019 11:16 - William A.

It’s not four million coming your way. It’s 1.6 million after they short change you on the cash option. Your still better off with this option our country is over 20 trillion in debt it’s not if but when your taxes will increase dramatically.

3/22/2019 04:47 - Herman S.

Team NCEL, how many entries are in as of today for the following promotions? IE: Lucky Cash Dash, 2019 Multiply The Cash Second Chance & Colossal Cash. Thanks in advance for sharing. NC Lottery
Good morning Herman, Our latest numbers are from Monday and the totals have the Lucky Cash Dash at 825,833 entries, the Colossal Cash second-chance drawing at 590,852 entries, and the Multiply the Cash second-chance at 12,715,603 entries. Check back on Monday and we can share updated totals with you! *****UPDATE: Hey Herman! Here are the updated totals as of this morning: The Lucky Cash Dash Lucke-Rewards drawing has 1,194,712 entries, the Colossal Cash second-chance drawing has 650,670 entries, and the Multiply the Cash second-chance drawing has 15,107,180 entries.

3/22/2019 03:27 - Tatiana D.

I am not a tax professional, but I believe that the taxes taken from annuity payments will be about the same as the ones taken from the lump sum. There is no tax advantage in choosing this option.

3/22/2019 03:14 - Shakeia H.

Congrats Larry. Does anyone know how many entries for the March 31st second-chance drawing?NC Lottery
Hi Shakeia, Our latest numbers are from Monday. The Multiply the Cash second-chance drawing had a total of 12,715,603 entries. Check back this Monday and we can share some updated numbers with you.*****UPDATE: Hey Shakeia, As of Monday, 3/25, the Multiply the Cash second-chance drawing has 15,107,180 entries.

3/22/2019 02:46 - Carlton B.

Congrats Larry, enjoy your winnings. I will be next.

3/22/2019 08:37 - Mary G.

Knowing that the winnings can be passed down to loved ones makes a difference for me. I would want to make life easier for my grandchildren, or fund a charity I love. I know the temptation is to grab it all at once, but look at how much goes to taxes, and gets lost in the lump sum process. Each person has his/hers unique set of circumstances. If I won this much, the first thing I'd do is see a financial advisor, because I wouldn't have a clue how to manage $4 million coming my way!

3/21/2019 09:07 - Terry B.

wondered the same thing myself, Tiffany D, why no one else wants to take the annuity (20 years of income) instead of the lump sum. Unless everyone's first impulse is to stuff a suitcase full of cash and head for Vegas.

3/21/2019 01:24 - Eric C.

Depending on how much you normally earn and how large a prize you win affects how much is actually taken in taxes. The lottery offices do as mentioned in other comments, but once you plug in a 1099 amount into your taxes it will most likely change your taxes due. Even the first $1,000 win I had years ago changed both state and federal numbers. And don't "forget" to add in any 1099s you have. They know, and you WILL be audited... NC Lottery
While we aren't able to give tax advice to our players, we do highly recommend that any big winners consult with a tax professional when they claim their prize.

3/21/2019 12:57 - Gary C.

Congratulations Larrry on your big win!!! I hope you find that perfect home with some land !!!

3/21/2019 11:39 - larry j.

With the twenty year annuity, would that be paid over the twenty year to one's spouse if I would pass away? Congrats to all winners.NC Lottery
Hey Larry, It would be paid to whoever the winner designated as their estate.

3/21/2019 09:09 - Shaqwanna P.

I noticed that you said lottery winnings of $5,000 and up are subject to the minimum state and federal taxes. I was taxed state taxes on a $2,600 win about four years ago. So could you please explain that, wasn't anywhere near $5,000.NC Lottery
Hey Shaqwanna, Sorry for not clarifying further. The federal withholding begins with all prizes of more than $5,000 and the state withholding begins with all prizes of $600 or more. So for prizes of more than $5,000, both federal and state taxes are withheld. Hope this helps!

3/21/2019 08:37 - Charlie H.

Congratulations Larry! One question for NC Lottery, what happens if you choose the annuity and die after only one payment? Where does the rest of the winnings go?NC Lottery
We sure hope that doesn't happen, but if a winner were to pass away, all remaining annuity payments would be paid to the winner's designated estate.

3/21/2019 07:31 - Tiffany D.

I wonder why no one every takes the annuity payments.

3/21/2019 01:39 - Larry H.

Congrats Larry. Hope I'm next. How come the vote for your teacher and school award is only for mecklenburg county only? Something funny is going on here! I tried to check other schools names and you can't change the school name! Awful funny stuff going on here now!!!NC Lottery
Hey Larry, The NC School Heroes website uses geolocation to show you the nominees from the county that it thinks you are in. Sometimes it doesn't quite get it right. If Mecklenburg is not the county you wish to see, you can always select "All" from the drop down to see all 100 counties, or select a different county and filter that way. Be sure to select a different county before trying to select a school. Hope this helps!

3/20/2019 10:28 - Rex K.

Way to go. Congratulations. God is great

3/20/2019 10:02 - David M.

Congratulations! I know that prizes $600 or more have to be claimed at a lottery office, but at what amount do you start withholding taxes from the winnings?NC Lottery
Hey David! Lottery wins of more than $600 are subject to minimum state withholding and wins of $5,001 and up are subject to both state and federal withholding.

3/20/2019 09:55 - Sharonda M.

Congratulations my dream here too

3/20/2019 08:55 - Debra B.

Congrats to the man from Nebo. Sorry that you had to pay all those taxes. Such a rip off. Still no top prize winners here in our small town when it comes to scratch offs.

3/20/2019 06:43 - roberta n.

Congratulations Sir, enjoy your blessings. You deserve the land and home of your dreams and now it is possible.

3/20/2019 06:02 - Brenda K.

Glad to see that someone local won don't see alot of winners in this area. Congrats to you Larry

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McDowell County thrift store worker to buy dream home with $4 million prize

March 20, 2019 Posted by NC Lottery at 3:10 PM