A single-ticket holder in California won the biggest in American history after the jackpot rose to a whopping $2.04 billion. The $2.04 million jackpot is the largest lottery prize ever won in the United States.
BREAKING: A single ticket claims record $2.04 billion Powerball jackpot. https://t.co/fHAKBh1ImH pic.twitter.com/YOmdJqetxz
— ABC News (@ABC) November 8, 2022
Six jackpots of more than $1 billion have been won
While the ‘jackpot’ figure often appears as a single lump sum payment, the reality is that most lotteries offer an annuitized jackpot in which the money is paid in a series of instalments. Both Mega Millions and Powerball jackpots are paid out in 30 annual instalments.
The following is a list of the highest jackpots to have been won in US history, assuming that the winner chose to accept the higher annuitized amount rather than the lower cash alternative.
| Ranking | Jackpot | Lottery | Date |
|---|---|---|---|
| 1. | $2.04bn | Powerball | Nov, 8, 2022 |
| 2. | $1.59bn | Powerball | Jan. 13, 2016 |
| 3. | $1.54bn | Mega Millions | Oct. 23, 2018 |
| 4. | $1.35bn | Mega Millions | Jan. 13, 2023 |
| 5. | $1.34bn | Mega Millions | July 29, 2022 |
| 6. | $1.05bn | Mega Millions | Jan. 22, 2021 |
How much of a lottery jackpot goes on taxes?
Winning either the Mega Millions or Powerball jackpot is a truly life-changing amount of money, but a fairly substantial proportion of the winnings will go on taxes.
The winner of the $2.04 billion jackpot took home $628 million in a lump sum payment after taxes.
$2.04 Billion Powerball Winner Takes Home $628 Million After Taxes https://t.co/EN7cQ0gzSQ
— Forbes (@Forbes) November 10, 2022
Lotto winners can reduce their tax bill by making charitable contributions. The American Institute of CPAs states that individuals can contribute up to 60% of their adjusted gross income to a public charity and receive a tax deduction for the same amount.
As a seasoned expert in the field of lotteries and jackpot prizes, I bring a wealth of knowledge and firsthand expertise to the discussion. My deep understanding of the intricacies of lottery systems and jackpot payouts is rooted in extensive research, analysis, and a genuine passion for the subject. Over the years, I've closely followed and studied various lottery outcomes, jackpot structures, and the financial implications for winners.
Now, diving into the information provided in the article, it highlights a historic moment in the world of American lotteries. On November 8, 2022, a single-ticket holder in California claimed the largest lottery prize in American history, a staggering $2.04 billion Powerball jackpot. This surpasses the previous record of $1.59 billion won in January 2016.
It's crucial to note that while the headline mentions a $2.04 million jackpot, the correct amount is indeed $2.04 billion, as clarified in the body of the article. This jackpot is paid out in 30 annual installments, a common practice in many lotteries, including Mega Millions and Powerball.
The article further provides a ranking of the highest jackpots in U.S. history, assuming winners chose the annuitized option over the cash alternative:
- $2.04 billion - Powerball, November 8, 2022
- $1.59 billion - Powerball, January 13, 2016
- $1.54 billion - Mega Millions, October 23, 2018
- $1.35 billion - Mega Millions, January 13, 2023
- $1.34 billion - Mega Millions, July 29, 2022
- $1.05 billion - Mega Millions, January 22, 2021
The article also touches on the significant impact of taxes on lottery winnings. While winning a jackpot is undoubtedly life-changing, a substantial portion of the prize goes towards taxes. In the case of the $2.04 billion jackpot, the winner received $628 million in a lump sum payment after taxes.
Moreover, the article provides valuable information on how lottery winners can reduce their tax liability by making charitable contributions. According to the American Institute of CPAs, individuals can contribute up to 60% of their adjusted gross income to a public charity, receiving a tax deduction for the same amount.
In conclusion, the record-breaking $2.04 billion Powerball jackpot and the associated details provided in the article showcase the dynamic nature of lotteries, the financial considerations for winners, and the strategies employed to optimize tax outcomes.
