First off, let’s start with an summary of the US’s biggest lottery jackpots so far. One handful of people have been very generous over the last decade. As you can see, the majority of lottery jackpots were about the $650 million mark, but there are two amounts which stand out. Since January 13, 2016, the Powerball’s highest pay-out in US history is $1.5 billion. The award was divided among 3 winning tickets, purchased across the country in various states. In the end, each winner agreed to cash $328 million each in a one-time sum.
| Rank | Jackpot Amount | Lottery | Date | Winners | State | Net Winnings Per Person |
|---|---|---|---|---|---|---|
| 1. | $1.586 billion | Powerball | January 13, 2016 | 3 | CA, FL, TN | $328 million |
| 2. | $1.537 billion | Mega Millions | October 23, 2018 | 1 | SC | $878 million |
| 3. | $768 million | Powerball | March 27, 2019 | 1 | WI | $478 million |
| 4. | $758 million | Powerball | August 23, 2017 | 1 | MA | $480 million |
| 5. | $687 million | Powerball | October 27, 2018 | 2 | IA, NY | $198 million |
| 6. | $656 million | Mega Millions | March 30, 2012 | 3 | KS, IL, MD | $105 million |
| 7. | $648 million | Mega Millions | December 17, 2013 | 2 | CA, GA | $173 million |
Fortunately, here in the UK, we also have the opportunity to participate in the fun and excitement of winning a lottery jackpot. An added bonus is the ability to do so online. We’ve compiled a list of the best websites to play lottery online, for your convenience.
Winning the Lottery: What’s Next?
Usually, you’re faced with two choices after you win the lottery. You can opt to collect an annuity for a period of 30 years. You’ll get the maximum sum if you want this option but you’ll have to adjust for inflation. Your other option will be to get your reward in cash but you’re not going to be able to collect the entire amount.
Taxes are also another big factor. All gambling revenue in the US is considered taxable income, the lottery is no exception to this law. With the amount you’re expected to earn from a Powerball jackpot’s likes, the IRS should have you listed in the highest tax brackets. The federal tax is 25 percent and will be maintained even before you get your income. The majority that you’re going to have to pay come tax time. You do have local State taxes. They range from New Jersey 3 per cent to New York 8.82 per cent. The Powerball has a handy tax calculator which can give you a general idea of what you can expect to pay, depending on the state from which you bought your ticket.
All in all, even though you’ve won one of the biggest lottery jackpots ever, you expect to take a huge hit to your earnings. The decrease from the total prize money could reach up to 40%. Nonetheless, it’s not like you go home empty-handed. You can show net winnings per person in the table above. It’s sure enough money to meet the basic needs of everybody. However, what will make or break a person’s life is how you treat your prize money.
Lottery Winner Advice
We’ve seen numerous success stories and disasters, and when it comes to winning the lottery, it’s no wonder that society is divided into two camps. Some make lottery jackpots a blessing, some a curse. What is crucial is that you methodically handle your winnings and employ the professional support. Below are some helpful ideas on how you can assert your reward successfully and get the most out of it.
Don’t Rush to Cash In
When you’ve figured out that you’re a winner, don’t try to collect your winnings. First off, it takes the lottery operators at least 2 weeks before they can collect all the ticket reward money. Depending on the state it can be done within 180 days of winning to collect the Powerball jackpot. Mega Millions jackpots, on the other hand, need to be won within 60 days if you want to earn the cash.
Contemplate Whether to Choose Annuity or Cash
You’ll be met with two bonus choices while claiming the lottery jackpot. You will either get a cash payout that is going to be significantly reduced, or an annuity for 30 years. Annuity investments get interest, and eventually you demand the full sum. Most people find them the better choice, since you are not going to be tempted to spend all your money and be left penniless. Instead there are some pro cash reward points. You would immediately obtain your money and will theoretically invest it. Your investments could yield more income on the annuity than the interest. However, people blow it all up more often than not, when they get into over their heads.
Hire a Consultant
It can be daunting to win the lottery and the euphoria of the moment could leave you vulnerable to make poor decisions. Try recruiting experts to support you in this endeavor, before you can collect your winnings. First, you can consult a tax advisor to get a better picture of what, and what, you can expect to pay in taxes. They’ll also measure any costs you’ll face when recruiting professionals to assist you. Then consider a financial planner, especially if you cash out. Investing a portion of the money could prove fruitful over the long term. Moreover, you may be compensated for a tax break by contributing a certain amount.
Final Thoughts
Although we’ve enjoyed studying the subject and providing some helpful advice for you, most of us still dream of winning the lottery. If you’re one of those fortunate few, take your time and think about things. Keeping in mind that the odds of winning either the Powerball or Mega Millions are 1 in 350 million, it is best to make sure that luck doesn’t go to waste.
When you’re trying to play with better odds of winning on a smaller scale then online casinos will be your best bet. They’re the perfect chance to put wagers from your home’s comfort. You’ll also have access to various types of games, be they slots, table games or even lottery ones. Nonetheless, before you decide on your next gaming trip we suggest reading about the current legal status of online casinos in the United States.