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Another big betting day as Powerball and Preakness converge … and don’t forget, winners, about the taxes!

May 18, 2013

Here we are again.

Eight weeks after gamblers were having a field day putting money on a big Powerball jackpot and March Madness college basketball games, we're back at another gambling convergence.

Today we have another huge Powerball amount up for grabs — at $600 million as I type and growing — and the Preakness.


Powerball logoThe possible Powerball winnings could pass the all-time U.S. jackpot amount of $656 million that was paid out as a Mega Millions prize, split three ways, in March.

If there is a Powerball winner tonight, the current jackpot's lump sum would be $376.9 million. As the amount increases, so does the amount available to the ultimate winner.


And remember, you'll owe taxes on that lump sum.

As I've said many, many, many times before, I'll happily hand over Uncle Sam his share. So send your good thoughts the hubby's way, as he is charged with getting us a winning ticket!

Since Texas is a community property state, even though he's buying the Powerball slip, we'll get to share it equally. That's fine with me.

But we get a break on another consideration. Because there is no state income tax here in Texas, we won't have to worry about that tax bill.

Preakness 3
Click on image for a look at today's Preakness lineup.

Winning bettors on the second leg of horse racing's Triple Crown today in Baltimore also will owe taxes.

Although the horse industry is looking for changes from the Internal Revenue Service that would lessen the tax bite on pari-mutuel betting, that won't do today's picker of the Pimlico winner any good.


So just remember, whether you win any of the lottery money or your trifecta ticket pays off, be sure to set aside an amount for the tax collector.

And good luck everybody!

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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. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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