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The winners are selected at random. If you pick all the winning numbers, you'll win the jackpot, or share it with others who have all the correct numbers as well. Most lotteries also include smaller prizes for getting some combination of winning numbers, but not all of them.
How much are lottery winnings taxed? If you win nearly a billion dollars in the lottery, you definitely owe federal income tax on it. To start, 24% of your winnings are withheld for the IRS.