a gambling game or method of raising money by chance, in which tickets are sold and prizes are awarded based on random selection.
Lottery can be a fun way to play but it’s not without risk. The odds are long and the money isn’t guaranteed. Here are some tips to help you play smarter and avoid the pitfalls.
Rather than selecting numbers that have significance to you (like birthdays or your children’s ages) choose random numbers, Harvard statistics professor Mark Glickman says. That way, if you win, you won’t have to share your winnings with anyone who picked the same numbers. It’s also a good idea to buy Quick Picks because they’re easier to win than numbers that have been popular in the past, he says.
In an anti-tax era, states are becoming increasingly dependent on lottery revenues. They’re often earmarked for a specific purpose, like public education, but critics say this is misleading because the legislature can reduce appropriations from the general fund to cover lottery revenues.
The best way to minimize the tax bite is to donate a portion of your winnings to charity. You can do this through a donor-advised fund or private foundation, which will allow you to claim a charitable deduction in the year you receive the payout and make payments to charities over time. This is a better option than taking the lump-sum payout, which can trigger significant income taxes. Also, remember that playing the lottery as a get-rich-quick scheme is statistically futile and will only bring you short-term riches (Proverbs 23:5).