Powerball Jackpot Becomes 2nd In A Week To Reach $1 Billion

This is no April Fool’s joke: For the 2nd time in a week, a lottery jackpot of $1 billion is on the line.

This time, it’s in Powerball®, where the jackpot for that game’s drawing tonight now stands at an estimated $1 billion annuity, $483.8 million lump-sum option. It follows a Mega Millions® jackpot of $1.13 billion won in that game’s March 26 drawing.

The two jackpots climbed together for nearly three months, simultaneously topping $800 million for the first time in late March.

With Mega Millions being won, the bulk of the jackpot attention is now on Powerball as it continues to grow. The Powerball jackpot was last won on New Year’s Day. And while the jackpot is huge, it has a lot of room to go before it would hit record territory. Powerball holds the world record for a lottery jackpot, a $2.04 billion prize won in November 2022.

Withholding Rates In Iowa For A Jackpot Prize

At the Iowa Lottery, we’ve been fielding tax-related questions about the giant jackpots. We can answer some of them, but others would need to be addressed by a tax expert. That’s just one of the reasons we always encourage our winners to consult a lawyer or financial planner who can help them put together a plan for their winnings.

Here are the specifics the lottery can provide: For any jackpot prize claimed in Iowa, 24 percent federal withholding applies along with 5 percent state withholding. Those amounts are automatically deducted before the prize is paid and can’t be modified or waived.

The withholdings are designed to cover a prize winner’s tax liability from claiming a large lottery prize. But the total taxes that a winner would owe are dependent upon that person’s financial circumstances outside of winning the lottery.

In some instances, the withholdings may not be enough, in other instances, they may be too much. The details would be sorted out in the winner’s income-tax filing for the year.

Scammers Unfortunately Notice Big Jackpots, Too

Scam attempts have been at all-time highs in recent years, and while the criminals behind them run cons of all types, they turn their attention to impersonating lotteries when jackpots are high.

Scammers have fraudulently used the names and logos of lotteries and well-known lottery games, along with the names of lottery winners and lottery officials in an attempt to steal people’s money.

The scams can involve persistent telephone calls and official-looking emails, text messages, social media postings and letters. They promise big prizes and will try to lure you into thinking you’ve won. But it’s a scam. A common thread is that the unsuspecting “winner” is asked to pay money up front for things like taxes, processing fees or delivery charges.

The scammers can sound really convincing. But it’s important to remember this simple truth: There is never a fee to claim a real lottery prize. If you’re asked to pay money up front, it’s a scam.

When you win a prize in a game like Powerball or Mega Millions, you notify the lottery that you’re the winner, not the other way around. The Iowa Lottery has records about the winning ticket and where it was purchased, but we don’t know the winner’s identity until that person comes forward to claim the prize.

The Iowa Lottery keeps these and other security reminders as a permanent feature on its website to help consumers stay safe.

Play Healthy

At the Iowa Lottery, we want our players to enjoy the moment when it comes to big-jackpot fun, but remember that you are gambling when you buy tickets. There is no guarantee you'll win. Playing the lottery is something that should be done just for fun.

Comments

[Kyle Grey]

Nice Article