Are lottery prizes taxable?
Lottery winnings of $600.01 and over are subject to Federal Withholding tax. For
winnings of $600.01, up to and including $5,000, you will be issued a W-2G form
to report your winnings on your federal income tax form. For winnings of
$5,000.01 and over, your state’s Department of Revenue removes the 24 percent federal
withholding before you receive your winnings check (or, if it is
an annuity, from each winnings check). You then receive a W-2G form with each
check to submit with your 1040 form to show that the 24 percent federal
withholding already has been paid. In addition to federal tax, your state will
make additional withholdings for taxes, and most states will deduct other money that
you may owe to the state, such as back taxes, child support, loan payments, etc.
In addition, like the federal tax withholding, the state tax withholding at the time
of prize payout may not be the total state tax owed at the end of the year.
You must consult your state division of taxation for more information about the total
state tax requirements for lottery winners.
The state tax withholdings are as follows:
| Arizona | 4.8% state withholding (Arizona residents), 6% state withholding (non-Arizona residents) |
| Arkansas | 6.6% state withholding |
| California | No state tax on lottery prizes |
| Colorado | 4.63% state withholding |
| Connecticut | 6.99% state withholding |
| Delaware | 6.6% state withholding |
| Florida | No state tax on lottery prizes |
| Georgia | 5.75% state withholding |
| Idaho | 6.925% state withholding |
| Illinois | 4.95% state withholding |
| Indiana | 3.23% state withholding |
| Iowa | 5% state withholding |
| Kansas | 5.7% state withholding |
| Kentucky | 5% state withholding |
| Louisiana | 6% state withholding |
| Maine | 7.15% state withholding |
| Maryland | 8.95% state withholding (Maryland residents), 8% state withholding (non-Maryland residents) |
| Massachusetts | 5% state withholding |
| Michigan | 4.25% state withholding |
| Minnesota | 7.25% state withholding |
| Mississippi | 5% state withholding |
| Missouri | 4% state withholding |
| Montana | 6.9% state withholding |
| Nebraska | 5% state withholding |
| New Hampshire | No state tax on lottery prizes |
| New Jersey | 8% state withholding |
| New Mexico | 4.9% state withholding |
| New York | 8.82% state withholding, plus: 3.876% (NYC residents), 1.323% (Yonkers residents) |
| North Carolina | 5.25% state withholding |
| North Dakota | 2.9% state withholding |
| Ohio | 4.797% state withholding |
| Oklahoma | 5% state withholding |
| Oregon | 8% state withholding |
| Pennsylvania | 3.07% state withholding |
| Rhode Island | 5.99% state withholding |
| South Carolina | 7% state withholding |
| South Dakota | No state tax on lottery prizes |
| Tennessee | No state tax on lottery prizes |
| Texas | No state tax on lottery prizes |
| U.S. Virgin Islands | † Unknown State Tax Rate |
| Vermont | 6% state withholding |
| Virginia | 4% state withholding |
| Washington | No state tax on lottery prizes |
| Washington, D.C. | 8.95% state withholding |
| West Virginia | 6.5% state withholding |
| Wisconsin | 7.65% state withholding |
| Wyoming | No state tax on lottery prizes |
† This state/jurisdiction has not responded to our requests for this information.
Record Jackpots
Biggest Mega Millions lottery jackpot, declared at the level $640 million (in case of annual payments) at the time of the draw or $462 million (cash), was played 30 Martha 2012 of the year. Initial estimate of Friday's print run (after circulation 27 Martha, whose jackpot has stopped at $363 million in successive payments) was equal $476 millions (later the jackpot rose to $500 million and up again $540 million). Rapid ticket sales pushed the jackpot up to $656 million in annual payments and $474 million in cash. Mega Millions Lottery Draw Costs, following the previous jackpot win 24 january 2012 of the year, are estimated at least in $1,5 billion. In total, they claimed their rights to win 3 lottery ticket buyer (one from Illinois, Kansas and Maryland.
Second highest jackpot by size $636 million has been raffled 17 December 2013 of the year. The winnings were shared by the holders of two tickets, from California and Georgia.
The third largest jackpot in $390 million was raffled off in a circulation of 6 Martha 2007 of the year. 2 player, one from Georgia and one from New Jersey, shared among themselves the record win at that time. Both winners chose to pay in cash, sharing among themselves $233 million.
4th largest annual jackpot ($380 million) and the second largest jackpot cash ($240 million), was played 4 january 2011 of the year. Two ticket holders, one of the Post Falls, Idaho, and one from Ifrat, Washington State, guessed all six numbers, received by $190 million each (annual payments). Both players also decided to collect their winnings in cash.
How are the draws held?
Two lottery machines are used in the Mega Millions draw. Model, selected by the organizers of Mega Millions - Criterion II (Criterion II), manufactured by Smartplay International (Smartplay International), located in Edgewater Park, state of new jersey. The balls are mixed by two counter-rotating blades. 5 white balls one by one fall into the hole under the stirring drum. Beginning with 19 October 2013 of the year participates in the drawing 75 white balls in the first apparatus and 15 Mega Balls, painted gold, in the second apparatus.
Probabilities of winning
The probability of winning can be calculated mathematically. for example, the probability of winning the jackpot is 1 from C755⋅15{\displaystyle C_{75}^{5}\cdot 15}. (75 variants of the first ball X 74 variant of the second ball X 73 variant of the third X 72 variant of the fourth X 71 option five)/(5 X 4 X 3 X 2 X 1) or 5! (five factorial), and the resulting number must be multiplied by 15 (15 possible options "Mega Ball"). In this way, (75 X 74 X 73 X 72 X 71)/(5 X 4 X 3 X 2 X 1) X 15 = 258 890 850. This number means that, that one player has one chance out of 258 890 850 to win the jackpot. Likewise, the chance of winning a prize $1 миллион — 1 from C755⋅1514{\displaystyle C_{75}^{5}\cdot 15/14} = 1 of 18 492 204. The overall probability of winning a prize is 1 of 14,7.
How are the draws held?
Two lottery machines are used in the Mega Millions draw. Model, selected by the organizers of Mega Millions - Criterion II (Criterion II), manufactured by Smartplay International (Smartplay International), located in Edgewater Park, state of new jersey. The balls are mixed by two counter-rotating blades. 5 white balls one by one fall into the hole under the stirring drum. Beginning with 19 October 2013 of the year participates in the drawing 75 white balls in the first apparatus and 15 Mega Balls, painted gold, in the second apparatus.
Can non-US citizens play? What if a non-US citizen wins?
Yes, non-US citizens can legally play, and non-US citizens are eligible to win any prize offered in the game.
If a non-US citizen wins, they would claim their prize in the same manner that a US citizen would, but the taxes withheld would be different. For example, federal withholding for non-US citizens is a flat 30%. Also, individual states may have different tax structures for non-US citizens than they do for US citizens. Depending on which country the person is a legal resident of, there also may be tax treaties between the US and that other country which could be helpful in offsetting whatever the US tax liabilities are.
In short, non-US citizens can play and win Mega Millions. If a non-US citizen wins a large prize, they will be responsible for some amount of tax, which in the end will probably be an amount similar to what a US citizen would pay, but there are so many possible variations with international tax codes that you’ll need to consult with a local tax attorney if you need to know a precise amount of tax liability.
$656 million - 30 Martha 2012
Long before, how lottery jackpots exceeded the mark in $1 billion, Mega Millions held a historical edition, playing out 30 Martha 2012 the record jackpot at that time in $656 million. The circulation caused an incredible stir, which resulted in three winning tickets at once, each of which brought the lucky owner a third of the giant jackpot - $218 million. Here are the winners, and their incredible stories:
"Three Amigo" from Maryland
Three Maryland Public Schools Colleagues Form Their Mega Millions Syndicate, and he brought them the third of the $ 656 million jackpot.
In total they bought 60 tickets for the draw. On one of them all coincided 5 main numbers and the number of the ball "Mega Ball".
Friends were delighted with their huge win, but chose not to become public figures. A photo of them wearing gloves with a huge check has become part of lottery folklore. As noted by Maryland Lottery representatives, "It couldn't have happened with friendlier people".
Merle and Patricia Butler from Illinois
The second third of the $ 656 million jackpot went to Merle and Patricia Butler from Red Bud, Illinois, pensioners, which, according to them, always worked hard and paid taxes in good faith.
“It just happened, that we won the lottery ", said Merle in an interview. They preferred to receive all winnings in one payment, and after taxes, became on $111 million richer. When they found out about the incredible win, Patricia couldn't stop smiling and applauding. Merle was more pragmatic. He was quick to contact a financial advisor. Years later, the Red Bud winners continued to enjoy their wealth..
Anonymous winner from Kansas
A player from Kansas is the third winner of the Mega Millions jackpot, has taken advantage of the state's privacy policy. According to representatives of the Kansas Lottery, the winner and his lawyer contacted them the very next day after the draw. He also decided to receive the prize in one payment.
Incomplete systems
100% 2 – at 2 guessed:
Rooms: 6 – Tickets: 3
Rooms: 7 – Tickets: 3
Rooms: 8 – Tickets: 4
Rooms: 9 – Tickets: 5
Rooms: 10 – Tickets: 6
Rooms: 11 – Tickets: 7
Rooms: 12 – Tickets: 9
Rooms: 13 – Tickets: 10
Rooms: 14 – Tickets: 12
Rooms: 15 – Tickets: 13
Rooms: 16 – Tickets: 15
Rooms: 17 – Tickets: 16
Rooms: 18 – Tickets: 18
Rooms: 19 – Tickets: 19
Rooms: 20 – Tickets: 21
Rooms: 21 – Tickets: 21
Rooms: 22 – Tickets: 27
Rooms: 23 – Tickets: 28
Rooms: 24 – Tickets: 30
Rooms: 25 – Tickets: 30
Rooms: 26 – Tickets: 37
Rooms: 27 – Tickets: 38
Rooms: 28 – Tickets: 40
Rooms: 29 – Tickets: 43
Rooms: 30 – Tickets: 48
Rooms: 31 – Tickets: 50
Rooms: 32 – Tickets: 52
Rooms: 33 – Tickets: 55
Rooms: 34 – Tickets: 62
Rooms: 35 – Tickets: 63
Rooms: 36 – Tickets: 66
Rooms: 37 – Tickets: 68
Rooms: 38 – Tickets: 76
Rooms: 39 – Tickets: 78
Rooms: 40 – Tickets: 82
Rooms: 41 – Tickets: 82
Rooms: 42 – Tickets: 93
Rooms: 43 – Tickets: 95
Rooms: 44 – Tickets: 99
Rooms: 45 – Tickets: 99
100% 3 – at 3 guessed:
Rooms: 6 – Tickets: 4
Rooms: 7 – Tickets: 5
Rooms: 8 – Tickets: 8
Rooms: 9 – Tickets: 12
Rooms: 10 – Tickets: 17
Rooms: 11 – Tickets: 20
Rooms: 12 – Tickets: 29
Rooms: 13 – Tickets: 34
Rooms: 14 – Tickets: 43
Rooms: 15 – Tickets: 56
Rooms: 16 – Tickets: 65
Rooms: 17 – Tickets: 68
Rooms: 18 – Tickets: 94
Rooms: 19 – Tickets: 108
Rooms: 20 – Tickets: 133
Rooms: 21 – Tickets: 151
Rooms: 22 – Tickets: 172
Rooms: 23 – Tickets: 187
100% 4 – at 4 guessed:
Rooms: 6 – Tickets: 5
Rooms: 7 – Tickets: 9
Rooms: 8 – Tickets: 20
Rooms: 9 – Tickets: 30
Rooms: 10 – Tickets: 51
Rooms: 11 – Tickets: 66
Rooms: 12 – Tickets: 113
Rooms: 13 – Tickets: 157
Why is the cash option different than the advertised jackpot?
The Mega Millions jackpot is an estimated 29-year annuity value, with a total 30 payments (the first payment happens right away, followed by 29 annual payments). When players choose
the annuity option for their prize, the state lottery pays the prize out over 29 years (30 payments) by
buying U.S. Government Treasury Securities, which earn interest and mature annually over
the 29 years. That annual return is the amount the winners receive each year for the
29 year period. With the cash option, the state lottery will take the amount of
money that would have been invested and will pay it directly to the winner in one
payment. Both payment options have federal and applicable state taxes deducted
from them, although with an annuity option you pay taxes gradually on each annual payout, not all at once like with the cash option.
How to take part in the lottery through Golotter
The advantage of Golotter is, that you don't have to go to the USA, but at the same time you participate in Mega Millions legally and have a chance to win on a par with local players. To purchase a MegaMillions lottery ticket, you need to follow a few simple steps:
- register on the website golotter.com, go to the lottery page and fill in the necessary windows in the numerical matrix of the electronic ticket. You can choose one-time participation, multi-subscription with discount up to 25% depending on circulation or subscribe, where every tenth ticket is free;
- fill out a form with personal data: name, surname, country and address of residence, phone number. Enter your bank card details and confirm your participation;
- the agent of the intermediary service will purchase a ticket on your behalf, will fill the numeric matrix, as indicated on the website, will scan the ticket and upload the scanned copy to the account on the website. You can see the unique serial number, date, time and place of ticket purchase, and also check this data with the official lottery operator;
- wait for tuesday or friday and hope for luck.
If you guess all the numbers, you will receive a notification by SMS or email. The money will be credited in full to the account in the account, where you can withdraw them to a bank card or electronic wallet. If the win is large, your personal presence will be required, to apply for a prize. In this case, Golotter will organize your trip to the USA - it will help you to draw up the necessary documents to enter the country and pay for the airfare.
For 18 years of existence, Golotter has given millions of participants the opportunity to purchase tickets for a wide variety of lotteries from around the world, and also congratulated more than a million participants on the win. The cost of the service is included in the ticket price, so you don't have to pay a commission on your winnings.
Anyone can buy a lottery ticket from Golotter, regardless of the country of residence and citizenship. Beyond Mega Millions, here you can play other world famous lotteries, in particular in the American Powerball, Italian SuperStar and SuperEnalotto, Japanese Loto 7.
American Mega Millions Lottery Review (Mega Millions)
Specifications
| Options | The values |
|---|---|
| rules | 5 of 70 + PB 1 of 25 |
| Participants | USA |
| Draw time | W. 20:00 Fri. 20:00 |
| Jackpot Payouts | Cash |
| Tax requirements | Tickets for this lottery are purchased in Oregon, New Jersey or New York. Lottery winnings are subject to withholding tax. Oregon Lottery Holds 38% (federal and state tax) with winnings, the amount of which exceeds $600. New Jersey Lottery Holds 38% (federal and state tax) from all winnings, the amount of which exceeds $600. New York Lottery Holds 44,17% (federal tax, state and municipal tax) from all winnings, the amount of which exceeds $600. |
| Prize Increase Ratio | Increase your secondary prizes in 2,3,4 or 5 times depending on the "Megaplier" number |
Chances of Winning
| Prizes | Conformity | Odds |
|---|---|---|
| 1 Prize | 5+PB | 1:302 575 350 |
| 2 Prize | 5 | 1:12 607 306 |
| 3 Prize | 4+PB | 1:931 001 |
| 4 Prize | 4 | 1:38 792 |
| 5 Prize | 3+PB | 1:14 547 |
| 6 Prize | 3 | 1:606 |
| 7 Prize | 2+PB | 1:693 |
| 8 Prize | 1+PB | 1:89 |
| 9 Prize | 0+PB | 1:37 |
The American lottery "Megamillions" exists since 1996 of the year, but before that it had a different name "Biggame" (translated as "The Big Game"). It got its current name in the middle 2002 of the year. The smallest jackpot is twelve million, but since the fund is often transferred from one circulation to another, then in case of winning, the luckiest player can get several hundred million dollars in winnings. It is the size of the main prize that is the reason for the incredible popularity of this game..
Megamillions game rules
The player must choose five main balls (number range - 1-75) and one additional or "mega ball" (range of numbers 1-15). Also, players in some states can choose another ball, which is called "Megaplier", and if the number was guessed, the size of the prize grows significantly. Exists 5 main categories, the biggest of them is the jackpot (to get it you need to guess 5 numbers of the main balls of the draw and the number of the "mega-ball"), the smallest is a consolation prize (anyone gets it, who guessed at least one number).
Two lottery drums are used for the drawing: mixed in one 56 main balls, 5 of which drops with random numbers, and in the other - "mega-balls" in the amount 46 pieces.
All states (excluding California) each consolation category has a standard win rate. Why "excluding California"? The thing is, that in California itself, the size of the winnings actually depends on the percentage of sales. The player who wins the jackpot can either pick it up immediately (but at the same time he does not receive the entire amount), or receive your prize in parts according to the following scheme - from each won million the player is paid 38 and a half thousand dollars a year.
What can you win in the game "Megamillions"?
Smallest jackpot, possible in this game, is equal 12 million dollars. If after the end of the drawing there is more than one ticket holder with a winning combination, the reward is divided between these lucky ones.
It happens, that none of the players guesses any number 5 main balls, no "mega-ball" numbers. How to be in this case? In this case, the rules of the game provide for the possibility of transferring the entire amount of the jackpot to the fund, which will be drawn in the next draw.
And now some records from the game "Megamillions". Who won the highest amount? The largest amount in America was won by three (!) players. They divided among themselves just an astronomical amount - 656 million dollars!!! But sometimes people literally dig up treasures alone.. It happened, eg, with the player, who was able to buy a winning ticket in New York and receive as a reward 319 000 000 dollars. This momentous event happened 25 Martha 2011 of the year.
What are the prize categories, and what are the chances of winning?
As, according to the rules, players need to guess the numbers of five balls from the range "1-75" and one ball from the range "1-15", then the probability of a player winning in one of the prize categories is 6,8%
"Megaplier" - what is it?
Do not forget about such an element as well., like a ball called "Megaplier". This is the name of a special ball, which can increase the winnings of especially lucky Megamillions lottery players.
As mentioned above, this ball is played in all states, except California. By the rules of the game, the ball is chosen from the numbers "2", "3" or "4" and gives a strong increase in the player's monetary reward. For clarity, let's give an example: if you managed to guess four numbers of the main balls and the number of the additional ball "Megaplier", then in this case the size of your winnings may grow, eg, from one and a half hundred dollars to six hundred dollars.
States, participating in the drawing now and in the future
| Jurisdiction | Join Date |
|---|---|
| Arizona | 18 April 2010 |
| Arkansas | 31 january 2010 |
| California | 22 june 2005 |
| Connecticut | 31 january 2010 |
| Colorado | 16 May 2010 |
| Delaware | 31 january 2010 |
| Columbia region | 31 january 2010 |
| Florida | 15 May 2013 |
| Georgia | 1996 |
| Idaho | 31 january 2010 |
| Illinois | 1996 |
| Indiana | 31 january 2010 |
| Iowa | 31 january 2010 |
| Kansas | 31 january 2010 |
| Kentucky | 31 january 2010 |
| Louisiana | 16 November 2011 |
| Maine | 9 May 2010 |
| Maryland | 1996 |
| Massachusetts | 1996 |
| Michigan | 1996 |
| Minnesota | 31 january 2010 |
| Missouri | 31 january 2010 |
| Montana | 1 Martha 2010 |
| Nebraska | 20 Martha 2010 |
| New Hampshire | 31 january 2010 |
| New Jersey | 1999 |
| New Mexico | 31 january 2010 |
| New York | 2002 |
| North Carolina | 31 january 2010 |
| North Dakota | 31 january 2010 |
| Ohio | 2002 |
| Oklahoma | 31 january 2010 |
| Oregon | 28 Martha 2010 |
| Pennsylvania | 31 january 2010 |
| Rhode Island | 31 january 2010 |
| South Carolina | 31 january 2010 |
| South Dakota | 16 May 2010 |
| Tennessee | 31 january 2010 |
| Texas | 2003 |
| US Virgin Islands | 4 October 2010 |
| Vermont | 31 january 2010 |
| Virginia | 1996 |
| Washington | 2002 |
| West Virginia | 31 january 2010 |
| Wisconsin | ? |
| Wyoming | No data |
States of alabama, Alaska, Hawaii, Mississippi, Nevada and Utah do not currently host lotteries in their territories due to legislation or constitutional mandate. Puerto Rico hosts lottery draws on its territory, however does not participate in the Mega Millions lottery and, according to data received in October 2013 of the year, does not plan to join the draw. 14 Martha 2013 of the year Wyoming became 44 staff, who established the lottery, however, tickets are not sold on its territory.
$414 million - 18 Martha
Jackpot c $414 million was ripped off 18 Martha 2014 couple from Florida (Raymond Moyer and Robin Collier) and a player from Maryland. Moyer and Collier become the first Mega Million winners in Florida history (lottery tickets in this state began to be sold a year earlier).
Ms Collier told reporters, about that moment, when she found out about her victory. She watched the print run on TV, and the drawn numbers seemed familiar to her. She stopped the video and ran for a ticket.
“When I realized, that all numbers matched, I started jumping on the couch for joy, and then I called Raymond and told him, what we won "!
The couple were shocked by the victory. Really understand, that they won the jackpot, they became only after, how the store was shown on TV, in which they bought a lucky ticket. "Yes, it was definitely a shock, but this is an incredible gift of fate, which will allow us to do a lot, which we couldn't before winning ".
As for the second winner, he chose to remain anonymous, but shared some important advice with lottery fans: “You have to play, to win. Play with your lucky numbers ".
Record Jackpots
Biggest Mega Millions lottery jackpot, declared at the level $640 million (in case of annual payments) at the time of the draw or $462 million (cash), was played 30 Martha 2012 of the year. Initial estimate of Friday's print run (after circulation 27 Martha, whose jackpot has stopped at $363 million in successive payments) was equal $476 millions (later the jackpot rose to $500 million and up again $540 million). Rapid ticket sales pushed the jackpot up to $656 million in annual payments and $474 million in cash. Mega Millions Lottery Draw Costs, following the previous jackpot win 24 january 2012 of the year, are estimated at least in $1,5 billion. In total, they claimed their rights to win 3 lottery ticket buyer (one from Illinois, Kansas and Maryland.
Second highest jackpot by size $636 million has been raffled 17 December 2013 of the year. The winnings were shared by the holders of two tickets, from California and Georgia.
The third largest jackpot in $390 million was raffled off in a circulation of 6 Martha 2007 of the year. 2 player, one from Georgia and one from New Jersey, shared among themselves the record win at that time. Both winners chose to pay in cash, sharing among themselves $233 million.
4th largest annual jackpot ($380 million) and the second largest jackpot cash ($240 million), was played 4 january 2011 of the year. Two ticket holders, one of the Post Falls, Idaho, and one from Ifrat, Washington State, guessed all six numbers, received by $190 million each (annual payments). Both players also decided to collect their winnings in cash.
