Powerball Jackpot Becomes Second In A Week To Reach $1 Billion
Powerball's Prize Follows on the Heels of Mega Millions
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CLIVE, Iowa — This is no April Fool's joke: For the second 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 Monday's drawing 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 prizes had 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 climb. The Powerball jackpot was last won on New Year's Day.
While the jackpot is huge, it has room to grow before approaching 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
The Iowa Lottery has been fielding tax-related questions this month about the giant jackpots. While it can answer some of the inquiries, others would need to be addressed by a tax expert. That's just one of the reasons the lottery always encourages its winners to consult a lawyer or financial planner who can help them map out 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 lottery 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.
Protect Yourself From Scammers Who 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'll 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, and 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 try to lure people into thinking they've won. But it's a scam.
A common thread is that the unsuspecting "winner" is asked to pay money up front for things such as taxes, processing fees or delivery charges.
The scammers can sound quite convincing but it's important to remember this simple truth: There is never a fee to claim a real lottery prize. If you are asked to pay money, 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 the lottery doesn't know the winner's identity until that person presents the ticket for payment.
The Iowa Lottery keeps these and other security reminders as a permanent feature on its website to help consumers stay safe: https://ialottery.com/Pages/PlayerSecurity/PlayerSecurity_main.aspx
Play Healthy
The Iowa Lottery reminds players to enjoy the moment, but remember that you are gambling when you buy tickets and there is no guarantee you'll win. Playing the lottery is something that should be done just for fun.
The Iowa Lottery keeps these and other "Play Smart, Be Informed" details on its website to help everyone have an accurate understanding of how the lottery works: https://www.ialottery.com/Pages/PlaySmartBeInformed/PlaySmartBeInformed_main.aspx.
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