Four nights every week, you have the opportunity to play the lottery and gain the potential to win big!
You have two main options when it comes to lotteries that you can play. The US Powerball draws every Wednesday and Saturday, while Mega Millions draws every Tuesday and Friday. For now, let’s focus on Powerball, as this tends to be a firm favourite amongst the majority of players. Now, Powerball is renowned for its huge jackpot prizes. But how do these come into existence in the first place?
Why Does US Powerball Have Such Huge Jackpots?
Every Powerball jackpot initially starts out at $40 million. That’s an astounding amount in and of itself. Just think of what changes you could make to your life with forty million! But things get even better. If winning numbers are drawn and nobody wins the jackpot, it rolls over to the next draw day and more funds are added as more and more tickets are purchased.
How Does the Jackpot Roll Over?
So, you’re probably thinking - if sufficient people are buying tickets to significantly boost the size of the jackpot, why isn’t someone out there simply winning the $40 million straight off the bat? Well, in 2015, US Powerball added more numbers to the total numbers that could be drawn. This means that it is much more likely that people will win smaller sums of cash. However, more numbers in the draw simultaneously mean that chances of winning the main prize jackpot are significantly lower. Lower chances mean the money is more likely to roll over and someone will ultimately win a much larger prize!
Has US Powerball Ever Had a Cap?
Powerball has never had a cap. The prize simply keeps rolling over time and time again until someone wins the seemingly ever-growing fund. This is how someone managed to win $1.6 billion with US Powerball. The jackpot rolled over twenty-one times consecutively, resulting in an astounding figure to be won.
Taxes on Jackpot Winnings
So, with such large sums of money involved, tax is inevitably going to be involved too. You are likely to have to pay tax if you are a US citizen and win the jackpot, but at the end of the day, you’re still ultimately going to get your hands on a huge amount of money that you didn’t have before if you do win! If you play from other countries and win, your tax will be subject to your own country’s laws. If you want to play the lottery, especially the USA Powerball, and are not an American citizen (perhaps you are from India, Canada, Chile, Peru, Argentina, Russia, or Romania), you will still have to pay tax on your winnings to the IRS. You will be subjected to a non-resident tax rate of 38 percent.
If you win big with Powerball, you stand to take home a serious amount of money. Hopefully, you can now understand why! You can also be more aware of taxation surrounding US Powerball if you are from a country whose national lottery does not charge tax on winnings.