Jackpot

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DEFINITION of 'Jackpot'

The top prize in a game of chance. Jackpot prizes can be anything from cash to cars and houses.

BREAKING DOWN 'Jackpot'

When winnings are high, as in the case of most jackpots, you may have to pay the estimated tax liability at source. As your employer does with employment earnings, the awarder will withhold the taxes and send them to the IRS on your behalf.

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