The jackpot for Tuesday night’s Mega Millions drawing was about $527.9 million, and the prize money for Powerball is growing to a record high. That money isn’t just a reflection of ticket sales; it also comes from other lottery-related income.
Lottery winnings are subject to federal and state income taxes, but the amounts withheld from jackpot winners vary by jurisdiction. In some countries, including the United States, winners can choose whether to receive their prizes as an annuity payment or in a lump sum. If they select the annuity option, their payments will be doled out annually for 30 years. A winner can also choose to pay one-time taxes and pocket the balance of their prize, a lump sum that will be reduced by withholdings from their winnings.
Winning the lottery isn’t easy. The odds of a single player picking all six numbers are about one in 300 million. But there are some small actions that can help tip those odds in your favor.
It’s human nature to daydream about hitting the jackpot, whether it’s winning the lottery or backing a hot stock that skyrockets in value. The term has even become common in the financial realm to describe any large and unexpected win. Merriam-Webster isn’t quite sure where the word originated, but it’s certainly been popularized in recent decades. In fact, it’s so prevalent that some analysts worry it’s becoming devalued by overuse. Nevertheless, the concept behind it isn’t going anywhere, as even a relatively small jackpot can be life-changing.