The lottery is a form of gambling, in which numbers are drawn at random. Some governments outlaw lotteries, while others endorse them and organize state and national lotteries. Regardless of how you feel about lotteries, there are a few things you should know before you play. Here, we will talk about the odds of winning and taxes associated with winning the lottery.
Powerball jackpot reaches record $1.9 billion
The Powerball jackpot is on the rise again. The winning ticket must match all six numbers. The jackpot is expected to reach $1.9 billion. The last time the jackpot was this high was in January 2016, when three people split a jackpot of $1.6 billion. This time, no one claimed the winning ticket.
The Powerball jackpot is the largest of all lotteries. In 2016, it set the Guinness World Records for the biggest jackpot in a national lottery. Three people shared a jackpot of $1.586 billion in that drawing. The Powerball is drawn every Monday, Wednesday, and Saturday and tickets are available up until 9:59 p.m. On the drawing night, the results are broadcast on Channel 29. A play slip costs $2 and can be bought at any Pennsylvania Lottery retailer. The lottery is played in 45 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.
Mega Millions jackpot reaches record $2.04 billion
A multi-state lottery association has said the jackpot for the Mega Millions has reached a record $2.04 billion. The previous record of $1.9 billion was set in October 2011. The current jackpot is nearly 400 million more than the previous record, and only four jackpots have reached $1 billion. The jackpot started at $20 million on Aug. 6 and grew to a record amount in less than three months.
Powerball lottery officials are eager to hold the drawing to award the world’s largest lottery prize. Its previous record was $1.586 billion, which was shared by three winners in California.
Taxes on winnings
Depending on where you live, you may have to pay state and local taxes on your lottery winnings. For instance, New York has a 13% income tax on lottery winnings. However, in Yonkers, you will pay only 1.477 percent of the winnings. And even then, your state and city will want a share.
Fortunately, if you won a lottery and did not file a state tax return, you can deduct state income taxes from your federal taxes. However, the Tax Cuts and Jobs Act limits the amount that can be deducted by an individual as an itemized deduction to a maximum of $10,000 (five thousand if married filing separately). Of course, that’s a drop in the bucket compared to your prize.