Are Game-Show Winnings Taxed like Jackpots?

Just wondering if game show winners were taxed the same as say winning a megabucks or a lottery (James Holzhauer) or is there a different tax bracket used. I’m assuming that California and Nevada will both have their hands deep in his pockets.

Yes, money earned on game shows is taxed just like jackpots -- in a single one-time payment.

Since game-show winnings count as normal income for tax purposes, how much a winner keeps depends on his or her tax bracket.

James Holzhauer will receive however much he winds up winning in a lump sum a few months after his last show and will need to write a big painful check to the IRS.

The famous case in this regard is of Richard Hatch, who won $1 million in the first season of the reality-TV show "Survivor" and was later convicted of failing to pay taxes on his winnings. He served 51 months in federal prison on the conviction.

And yes, California will collect taxes from the final total. We're not sure about "Jeopardy!", but we know some other game shows subtract California taxes from the check that eventually goes to the winner.

Nevada, however, won't get a red cent, at least not in income taxes. Nevada has no state income tax.

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Comments

Boogieman888 Jun-02-2019

Game show taxes......are yoiu sure

If a person is a Nevada resident, I do not believe he has to pay California taxes, as much as they would like. That is why we have an influx of Californians moving to Nevada(beside the fact they are falling into the ocean).

VegasROX Jun-02-2019

CA vs NV

Boogie, whole James H gambles for a living, I think his actual state of residence is California.  That will end up being an expensive decision.

Vickar Jun-02-2019

Game show taxes

I won a car on the "Price Is Right" which is filmed at CBS Television City, Los Angeles, Ca.  The car was delivered to my home town in Florida. I got a 1099 from CBS in January for the full value of all prizes including the car.  When I filed my taxes, I paid federal income tax, California State income tax (because the income was "earned" in Ca.) and Florida State sales tax (because the point of delivery is the point of sales).

taxman Jun-02-2019

Taxes on Game Show Winnings

Jeopardy is filmed in Burbank California.  Winnings are considered California income, no matter where the contestant lives.  Therefore, winners will owe California taxes.  If they live in a state that has its own income tax, there generally is a credit for paid California taxes to be taken against the local state income taxes.  In "no income tax" states (such as NV, AK, FL, SD, TN, TX, WA, and WY), California still gets to tax the winnings where the show was filmed.

David Jun-02-2019

It is taxed, but it shouldn't be

We don't have a revenue problem, we have a spending problem. Winnings of any sort should not be taxed.

Jon Anderson Jun-02-2019

income taxes

he will owe taxes as the money earned/won took place in california. haven't you heard of the many professional athletes who have to file upwards of 12 or so income taxes every year due to the fact they play/perform/work in income taxing states ?? the tax professionals working for these pro athletes really do earn their fees since they have to be up to date and well versed in various states's income tax laws, rules, etc. NOBODY gets off the hook baby. NOBODY !!!!    fin

O2bnVegas Jun-02-2019

Send it in

Remember that IRS 'form' [joke] that made the rounds years ago:  
"Did you have any income last year?
 - Yes
 - No

If yes, send it in."

Not so funny, though.

Kevin Lewis Jun-02-2019

The IRS is the only winner

I wonder if anyone would EVER buy a lottery ticket, play a progressive slot machine, enter a poker tournament, or appear on a game show if they truly knew the tax ramifications of winning. You win, they want "their" share; you lose, it's don't come crying to me, buddy. In the WSOP, the IRS makes over $50 million without lifting a finger. Every time Megabucks hits, it's $3 million+ for the IRS. We poor sods who try to gamble and win are in the wrong racket. (For that matter, the IRS will make $1 million or more off of Holzhauer's efforts, again, without doing a thing!)

Question of the Day - 02 June 2019

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