does anyone know how much of a percent americans pay in taxes on the money they win on a game show

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how much of a percent americans pay in taxes on the money they win on a game show

It all depends on your tax bracket. Anything you have won, whether cash or prizes, gets added into your income. If you win a prize, i.e. vacation, car, makeover...the value of that is added as income and the recipient will receive a 1099 form. You end up paying the tax on the total income.

Originally posted by Georgia85:
[/QUOTE]
It all depends on your tax bracket. Anything you have won, whether cash or prizes, gets added into your income. If you win a prize, i.e. vacation, car, makeover...the value of that is added as income and the recipient will receive a 1099 form. You end up paying the tax on the total income.[/QUOTE]

that's right, but as well as State taxes you also pay federal taxes and, as i understand it, you could end up paying as much as $500,000 in taxes on winnings of a million dollars.
Which makes me wonder if it's worth spending all that time on a desert island eating bugs lol

The IRS always wants its pound of flesh. It may be an urban legend, but I've been told they have agents at the studio totalling up the value of the booty.

Mean, aren't they ! Here (UK) the Revenue doesn't and wouldn't tax the winnings. Winnings in game shows are from a one-off event and so the Revenue would not hold them to be earnings (i.e income ). So, unless the contestant was a professional who entered game shows to win prizes as a means of earning a living, in the way that a professional golfer enters tournaments, they'd not be in danger of being taxed.

Does the IRS tax lottery winnings ? The IRS must be tempted, if that keen, to tax the profit on the prize less the price of the lottery ticket

Not only are lottery winning taxed, but if you win, you really don't win what was announced.

Example: The winning prize is $1 million. The winner does not get $1 million (with taxes taken out); he gets, generally, $50,000 a year for 20 years (with the taxes taken out of the $50,000 every year). If the winner wants his winnings (after taxes) in a lump sum, he gets much less. While I am not sure how the exact amount is determined, I suspect that the winner gets what a $1 million annuity (20 year pay-out) would cost the state to purchase.

While the rules for the payoffs differ among lotteries, several that I know of do give the winner an annuity, not a cash award.

From CNN: 'Jeopardy' Bits:

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Brother, can you spare a dime? Even once the shows air, "Jeopardy!" doesn't pay out until up to 120 days later. The state of California takes 7 percent in taxes off the top; contestants are responsible for reporting winnings to the IRS for federal taxes.