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How many Game Show winners actually collect their cash & prizes?
I just read a story on Yahoo! Shine that said when somebody wins cash & prizes on a Game show, they still have to pay Taxes on it, in how many cases, do winners forfeit their prizes as a result of this?
1 Answer
- 8 years agoFavorite Answer
I have wondered this as well. The game show would likely withhold everything at least at the 25% federal supplemental tax rate (including the fair market value of any goods/services and any cash). Imagine you're visiting the Price is Right and manage to win a Jet ski worth $3000, but are just in town from Kansas. Are you likely to claim that prize at the end, knowing that you will owe taxes on the full fair market value? Plus now you have to ship a big item back to Kansas or try to sell it from CA. I think I would pass. Assuming that there are items that get waived, the next question is if the game show producers keep these prizes themselves or if they are just given away the next week.