How to Form a Lottery Jackpot Pool

The chances of winning a lottery jackpot are extremely low, so a good way to increase your odds is to form a lottery pool. This will increase your chances of winning and reduce the chances of losing your investment. A recent example of a lottery jackpot pool involved a 49-person office at SEPTA, which split a $172.7 million jackpot in April 2012. A similar pool took part in a $319 million Mega Millions jackpot in 2011.

The Mega Millions jackpot is the third highest prize in U.S. lottery history, and the winner probably only paid $2 for his or her ticket. They can choose to receive their $780.5 million prize in a lump sum or in payments over 30 years. In either case, winners must account for the federal tax withholding of 24%. They will also likely owe state income tax. In Illinois, lottery winnings are taxed at the state income tax rate of 4.95%, but winners in higher tax-states may owe more than that.

Most lottery winners choose a lump sum payment, because they want to get their hands on the money as quickly as possible. However, some may prefer to opt for an annuity, which will allow them to enjoy their money over a longer period of time.