Taxes and Scams to Consider When Playing the Lottery
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Whether you have been playing the lottery for a while or are still new to the game, there are many things to consider. Besides the prize, there are also taxes and scams to keep in mind.
Origins
Throughout history, lotteries have been used to raise funds for many different projects. From the earliest recorded lotteries in the ancient Chinese Han Dynasty to the modern lotteries today, lotteries have evolved into several different formats.
Ancient Chinese keno slips, for example, date back to 205-187 BC. These slips were used to fund wars and major government projects. Today, lottery gambling is still used to fund public works projects.
Ancient Romans used lotteries to settle legal disputes. They also used them to assign property rights. These lottery games were played in circuses and other public settings. They also used numbered parchment pieces to distribute the results.
Taxes on winnings
Getting a lottery win is a huge deal for many. It can bring financial freedom, and also give you newfound wealth. But it is important to consider all of the possible taxes associated with your prize. Depending on your tax bracket, the total tax bill could be as high as 50 percent of your prize.
The United States tax system is quite different from other countries. In fact, lottery winnings are taxed differently in most states. Some states withhold a portion of your prize. The good news is that you can minimize your tax bill if you play your cards right.