$1.59 Billion and the Largest Jackpots in the World
In the US, there have been jackpot winners up to unthinkable numbers: nearly $1.59 billion. This is the highest lottery prize in the world.
The big hit rate in the lottery is quite fragile, but this does not stop most people from imagining how their lives will be changed after just one night due to bringing in a huge pile of cash.
Lotto has become an exciting and popular online game around the world. It brings a completely new entertainment space and utility. It is not too difficult to learn concepts, rules and how to play online. You can now create yourself a free player account at W88 to start the experience. The betting system at W88 is huge. You are free to play and explore betting safely and conveniently.
Here are some of the largest jackpots in the world!
Powerball ($1,586 billion)
Powerball is one of America's most famous lottery prizes. In fact, this is the largest lottery jackpot in the world!
On January 13, 2016, three couples from California, Florida, and Tennessee (USA) bought tickets for a jackpot of $1,586 billion. This is the highest prize money in lottery history. Each couple received a pre-tax bonus of $528.8 million.
The couple John and Lisa Robinson (from Tennessee) decided to receive the entire amount of the bonus at one time (instead of gradually receiving each year). After deducting all taxes, they brought in 327.8 million USD. Three years after the fortune, the Robinsons now live in a 10-bedroom, 8-bathroom villa, worth $6.2 million.
Not the same as the Robinsons, Maureen Smith and David Kaltschmidt continue to live a simple lifestyle in a $300,000 old home in Florida. They still shop and eat at familiar shops and restaurants. And they continue to buy lottery tickets every day.
The couple Marvin and Mae Acosta remained hidden for 6 months before receiving 1/3 of the remaining prize of the lottery ticket worth nearly $1.59 billion. For the past three years, they still have not appeared publicly. Pictured is the 7-Eleven store, where the Acosta couple bought the winning ticket.
Leyne West, 51 year old, is the lucky one from Iowa. She also decided to accept the award like Mr. Bailey. She said when she bought the ticket, she left it in her sister's car. When comparing the results and knowing she won the prize, she asked her sister to bring the ticket to her. With the prize money, she set up a charity.
Mega Millions ($656 million)
Mega Millions lottery was born on August 31, 1996. Mega Millions is an American lottery; As of January 30, 2020, it is available in 45 states, the District of Columbia, and the U.S. Virgin Islands.
On March 30, 2012, three Mega Million jackpot tickets worth the US $656 million were sold in Maryland, Illinois and Kansas. The couple Merle and Patricia Butler in Illinois took home a $157.8 million bonus. They hired a legal and financial consulting team before receiving the award. The remaining two individuals won the prize without announcing their names.
Mega Millions (US $1,537 billion)
On October 23, a person living in South Carolina bought a Mega Millions ticket and won a giant prize of US $1,537 billion. South Carolina is one of those rare states that allows the jackpot winner to remain anonymous. It was not until March 4, 2019, that this woman came to receive the award. She decided to accept the entire bonus once. After deducting all taxes, she was entitled to 878 million USD.
Powerball ($768.4 million)
Manuel Franco, 24, received the Powerball jackpot of $768.4 million on April 23. Get a one-time bonus, after paying taxes he brought home $326 million. Franco - who previously lived in a small house on the outskirts of Milwaukee in the city of West Allis, Wisconsin - confided his goal before winning the lottery is just how in the account has more than $1,000.
Powerball ($758.7 million)
Mavis Wanczyk is the only one to buy the Powerball jackpot ticket on August 27, 2017. In total, she received more than 336 million USD in cash (choose to receive a one-time award, excluding taxes). After receiving the money, the woman in her 50s quit her job at Mercy Medical Center in Springfield, Massachusetts. No one knows where she is now.
Powerball (688 million USD)
On October 27, 2018, two lucky people from New York and Iowa bought a Powerball jackpot worth 688 million USD. This is Robert Bailey, who is from New York. He decided to receive cash once and after paying the tax went home with nearly 125.4 million USD in the account.
What taxes do lottery winners need to pay in the US?
A lottery winner in the United States, everyone has to pay these taxes including Federal tax, State tax, and Local tax. However, some cities, counties, states do not require tax.
In 2019, the highest federal tax rate is 37% for total income in excess of US $510,300 for singles and the US $612,350 for married people filing a joint return.
Of which, 24% of the prize value has been withheld by PowerBall and Mega Millions to pay federal taxes, the winner only needs to pay the remaining amount or receive the balance if any.
A lottery winner in the US, everyone has to pay these taxes
Federal taxes are applied on the prize value after all deductions are made. Local taxes and state taxes are two of those deductions. However, the Tax Cuts and Jobs Act limits the maximum deduction for each type to $10,000 in the tax years from 2018-2025.
The Balance has listed the states that have the highest lottery income taxes and the states that made the most of lottery winners in 2018.
In particular, the areas with the highest tax rates are Oregon (9.9%), Minnesota (9.85%), Iowa (8.98%), New Jersey (8.97%), Colombia and Vermont. (8.95%). However, New York City residents of New York and Yonkers are the highest taxpayers in the United States when they win the lottery because of both state tax and local tax rules. If adding 3.9% of local taxes to 8.8% of state taxes, the percentage of lottery winners here paid a total of 13%.
Thus, if the winner of $1 million, people have to pay 126,960 USD tax, much higher than the figure of $10,000 exempt from the federal tax calculation.
Fortunately, some states have higher income tax rates than Oregon, typically Hawaii (11%) but do not participate in Powerball, so residents here to be so worried about rewards. But at the same time, some states that do not collect income tax like Alaska or Nevada do not participate in this national lottery program.
Meanwhile, five states that do not set other income taxes are Florida, South Dakota, Texas, Washington and Wyoming, along with four states that apply a tax rate of 0% to lottery prizes including New Hampshire, California, Pennsylvania, and Tennessee.