Lottery dreams and tax realities

November 29, 2012

As you've already figured out by my presence here today, I did not win the Powerball drawing last night.

In fact, I only got one number, the checkmarked 22.

Despite what the ticket enthusiastically proclaims, chances are not good that you or I will ever be next.

Powerball itself notes that the odds of winning the record $587.5 million jackpot were 1 in 175,223,510.

Heck, I couldn't even beat the 1 in 55.41 odds to win $4! If I had, that would have at least covered the last two tickets I bought; yes, I also played the previous drawing.

Still, despite the odds, we play.

In fact, we're so eager to spend a few dollars to maybe win a whole lot more that some people waited longer in line to buy Powerball tickets than they waited to vote on Nov. 6.

And the Internal Revenue Service and state tax collectors are glad we are committed to our lottery dreams, because when one of us does win a jackpot, they do, too.

So Uncle Sam is delighted today. So are the tax officials in Arizona and Missouri where the winning tickets were sold.

I know it's irksome to think that a substantial chunk of the prize goes to taxes, but I'd be happy to bear that burden if only my numbers would ever come up!

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic.

Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Credits/Deductions

Disasters

Family

Filing and Paying Taxes

Politics/Laws

Refunds

State Taxes

Tax Brackets/Inflation

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Comments

February 10

13 years ago

I enjoy looking through a post that will make people think. Also, many thanks for allowing me to comment!
Molly Stevens

13 years ago

I always try to figure out how much you would actually pocket after all of the taxes and fees are taken out of your winnings. They always have that estimated cash value that has something to do with the lump sum cash you would receive. Definitely a little confusing. All I know is that if I won a ridiculous amount of money, I don’t think I would be complaining about paying taxes either!

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Lottery dreams and tax realities

February 10

Molly Stevens