If you win a trip on Wheel of Fortune is there an option to take cash instead? There isn’t an option to take cash. You are even cautioned that the prizes are just that, prizes, and that the tax obligation will be yours alone. As the first Survivor winner, Richard Hatch, discovered through convictions and prison time, even if you win a prize on television, Uncle Sam counts it as taxable income. How much you're. You’ve just won a ton of money and prizes on a game show. When “Wheel of Fortune” used to have the “Jackpot Round,” which would be prefaced by a short plug for the round’s sponsor.
Although the winnings from a game show can change a lucky winner’s life instantly, their after-winning-life might not be as splendid and impressive as most of us think.
When spinning the wheel, the prize wave chosen determines the accessory options the player can win. Prizes are determined independently from the spot on the wheel and will line up with the spot that the winning selection applies to. If you have landed on a prize that you already own, you will instead receive 300 diamonds.
I always had the dream of making an appearance on game shows such as The Price is Right, Wheel of Fortune, and Let’s Make a Deal. The truth is, game show winnings are always a two-sided coin and often a suckers bet in my opinion.
While you’ll have magnificent on-air memories to perhaps cherish for years, you’ll also be taken to the terrible secrets of game show winnings: The burden of having to pay taxes on your winnings.
It’s something that you’ll never hear a game show’s host mention on TV, but you can always count on, that the IRS will always come for their share!
For this reason, let’s look at some issues revolving around paying taxes on game show winnings, whether it’s a new car, thousands of dollars in cash, or a fully-paid vacation to the Bahamas (which reminds me, I need a vacation.)
Are Game Show Winnings Taxed?
Yes, In the United States, winners have to pay game show prize taxes. This is basically because the government views game show winnings as taxable income. It doesn’t matter whether the prize is in liquid cash or non-monetary, the winners are required to pay taxes on prizes won.
Most viewers often assume that the winner is often given their money or prizes right away after the show. If only it were that easy!
I laugh at how deceptive this actually is
Check out this article about Andrea Schwartz who won big prizes on one of my all time favorite game-shows The Price Is Right. Winning ‘The Price Is Right’ Is Great, Until You Get The Tax Bill
Here’s a quick summary of the article:After winning any game show or contest, you’ll sign some paperwork and agree that you’re going to pay taxes on the prizes. When it’s all said and done, the winner will most definitely get a 1099-MISC tax form from the show’s organizers, who are also obligated to send a copy to the IRS. And even if they do not provide you with the 1099 tax form, you still have to report the value of the winnings. Failure to do so can result in huge penalties!
How Much Will You Be Taxed?
The amount of tax you’ll pay on game show winnings depends on where you live and how much you win. You’ll have to pay federal taxes, as well as state taxes. If you, however, live in states that do not have income taxes such as Washington, Nevada, Texas, Alaska, Florida, South Dakota, and Wyoming, you may not have to pay state taxes on your game show winnings.
You’ll still owe Uncle Sam though (The U.S. Federal Government.)
Just like in lottery winnings, depending on your tax bracket, the IRS often expects you to pay a top rate tax of 37% on the gross value of the prize won, and this is on Federal tax alone! So suppose you won $10 million on a game show in the state of California where I live, you’ll have to pay a state income tax of about 12.3% plus the federal income tax of 37%.
YOU COULD END UP PAYING NEARLY HALF OF YOUR WINNINGS IN TAXES!
Can You Avoid Paying Game Show Prize Taxes?
There are a few occasions when you can avoid paying game show prize taxes. For instance, game show winnings and other 1099 based income that are worth below $600 are not taxed by the IRS.
Another way to avoid paying game show prize taxes is by offering the winnings as gifts to friends and family members. Even though this means that you won’t keep the winnings for yourself, it’s a way to avoid the tax burden.
Either way, you need to speak with a Financial Advisor to understand how much and how to properly report on that year’s tax return!
Better To Win Cash Than A Car Or Vacation
Recently I had a conversation my CPA about whether someone is better winning cash or an actual prize. What I learned was, it depends. But most of the time, you’re probably better off taking the cash. If you win cash, you can simply set aside a portion of your winnings to cover the tax.
If you win a non-cash prize it can be quite a burden since you’ll have to pay taxes based on the value of your winnings. And the value can be highly subjective. For example, you could win a car and they say it’s worth 40,000 dollars, but, you could buy the same car on a weekend close-out sale from your local dealer for 35k.
Wheel of Fortune is famous for giving cash prizes and vacation trips. The value of those trips will be counted as income for you, I recently read an article on MarketWatch which tells exactly what can happen.
Matt McMahan who won cash and prizes worth $16,400 and two vacation trips valued at $15,300.
The IRS not only taxed his cash and prizes winnings, but he had to pay tax on the two vacations. Fortunately, most shows do offer cash prizes in place of the trips, so you should consider going for the cash. Especially if you have to raise cash to pay for the taxes on the actual prize. Is it really free then? I’d take the cash and book my own vacation with as many discount deals as possible.
If You Do Ever Get Lucky And Win Remember…
- Consider paying the applicable or estimated taxes on any prize as soon as you win.
- Always know the exact value of your winnings. Show organizers may inflate the value to entice more participants or to reduce their tax obligations.
- Always consider going for cash instead of non-cash prizes such as a vacation.
- Do not be afraid to turn down any winnings if they may become a tax burden.
Wheel Of Fortune Prize Room
Remember, to cover yourself, always seek out professional help for your tax planning etc.
Have you won any game show prizes before? If so, I hope these tips can help you out.
The Wheel Of Fortune Puzzle will help you enter and win big money, vacations, and so much more during the Wheel Of Fortune game.
To enter, watch the Wheel Of Fortune with Pat Sajak and Vanna White and write down the bonus puzzle solution during the game. If you miss it, you will be able to find it in the Bonus Puzzle Chart below. Join the Wheel Watchers Club or login. Then enter the bonus puzzle today. The more you enter, the more chances you have to win.
Looking for the Celebrity Wheel of Fortune 2021 puzzle tonight? Discover what was the bonus puzzle answer below and enter the Wheel Of Fortune Celebrity $10,000 Giveaway 2021.
Day | Celebrity Wheel of Fortune 2021 Bonus Puzzle #1 | Celebrity Wheel of Fortune 2021 Bonus Puzzle #2 |
---|---|---|
January 7, 2021 | SAYING WHATEVER POPS INTO MY MIND | TOILET PAPER AIRPLANE |
January 14, 2021 | I’M TENSE AND NERVOUS AND I CAN’T RELAX | KRISTEN BELL-BOTTOMS |
January 21, 2021 | DIRTY DANCING WITH THE STARS | ORANGE IS THE NEW BLACK-ISH |
January 28, 2021 | ARIANA GRANDE LATTE | BRAZILIAN WAX MUSEUM |
February 4, 2021 | *** Celebrity Wheel of Fortune Episode 5 not airing this week *** | |
February 11, 2021 | ||
February 18, 2021 | ||
February 25, 2021 |
Looking for the Wheel Of Fortune T-Mobile Puzzle Of The Week? Discover what was the bonus puzzle answer below and enter the Wheel Of Fortune T-Mobile Puzzle Of The Week Sweepstakes 2020.
Day | T Mobile Puzzle Of The Week |
---|---|
September 29, 2020 | STAY CONNECTED COAST TO COAST |
October 6, 2020 | DO MORE OF WHAT YOU LOVE |
October 13, 2020 | THE BEST PLAN FOR YOUR GETAWAY |
October 20, 2020 | EXPERIENCE NATIONWIDE 5G |
October 27, 2020 | TREAT YOURSELF TO SPOOKY GOOD COVERAGE |
November 3, 2020 | YOU DESERVE THE BEST |
November 10, 2020 | No T-Mobile Puzzle This Week |
November 17, 2020 | ADVENTURE ACROSS AMERICA |
December 22, 2020 | THE GIFT THAT KEEPS YOU CONNECTED |
December 29, 2020 | CELEBRATE THE NEW YEAR WITH A NEW PHONE |
January 5, 2021 | BIGGER AND BETTER THAN EVER |
January 26, 2021 | YOUR VACATION COVERAGE |
Looking for the puzzle tonight? Discover what was the bonus puzzle answer below.
Day | Wheel Of Fortune Bonus Puzzle Solution |
---|---|
February 1, 2020 | MOVIE MAGIC |
February 2, 2020 | WORKBENCH IN THE GARAGE |
February 3, 2020 | HUGE BASH |
February 4, 2020 | BASED ON AVAILABILITY |
February 5, 2020 | |
February 8, 2020 | FABULOUS BARGAIN |
February 9, 2020 | |
February 10, 2020 | |
February 11, 2020 | |
February 12, 2020 | |
February 15, 2020 | |
February 16, 2020 | |
February 17, 2020 | |
February 18, 2020 | |
February 19, 2020 | |
February 22, 2020 | |
February 23, 2020 | |
February 24, 2020 | |
February 25, 2020 | |
February 26, 2020 |
Are we missing a bonus puzzle of the day? Comment below to help us maintain our chart updated. Thanks!
Tags: Wheel Of Fortune Sweepstakes 2021
Comments (18 Messages)There was a problem tonight with the tv feed of the program. Instead of the Bonus Puzzle for January 4, 2021, it was January 8, 2021. Unfortunately I was unable to enter the Bonus Puzzle Solution/ BOWL OF APPLES. Perhaps you can see if NBC can get the correct date of the show on the day it is seen by us. 1-4-2021 was 1-8-2021 program
Toilet paper airplane
I don’t see the “Wheel Of Fortune Bonus Puzzle Solution” for January 8th, 2021 in the chart above.
Saying whatever pops in my mind
Wasn’t the 2nd puzzle answer Kristen Bell-Bottoms?
Isn’t tonight’s $10,000 Celebrity Puzzle (1/14) answer: KRISTEN BELL-BOTTOMS? Not, The Empire Strikes Back in the Saddle???
Kristen bell-bottoms is the answer to the $10,000 celebrity giveaway puzzle
I wanted to enter the celebrity bonus given by terri hatcher almond milk but i couldn’t find the entry
Wheel Of Fortune Prizes 1995
The bonus puzzle solution for 14 January 2021 is missing
LOCAL HOBBY SHOP on 01-14 2021 doesn’t match with the bonus round when I try to play it. Please fix it.
where is the link to enter the puzzle info?
what is the bonus puzzle for tonight, Jan 19? Thanks
do you have the 1/20/21 solution. show was preemtied in my area. thx
The bonus round puzzle for January 25th 2021 was a blooming orchid it did not match up with the spaces that was given us for the puzzle
why did the january 25 2021 puzzle not match the solution.
Answer was: Cuddly Dogs
Jan 28, 2021
CUDDLY DOGS
Msn zone casino. i love playing wheel of fortune
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