Looking to Win a Game Show? Beware of the Taxman

 Looking to Win a Game Show? Beware of the Taxman

 

Tough economic times have increased the popularity of television game shows, as participants hope for quick bucks to settle their increasing bills. However, a big game show  WhatsApp lucky Draw winner 2022   win is always accompanied by a huge tax bill from the taxman. Listed below are some past game show winners that have faced the harsh reality of winning big and losing big to the taxman.

Julie Jackson, 22 years old, won around $10,000 in prizes, a seven day trip to Austria, and some golf clubs, in an episode of “The Price is Right” in May 2007. However, Julie did not quite “receive” everything that she won. Although she enjoyed the trip to Austria, the golf clubs were not immediately available, and she was given cash in their stead.

Chad Foreman a 37 year- old from Fayetteville, West Virginia, took part in the same show and had a similar experience. He won a trip to Brazil, video games, and a recliner among other prizes. However, instead of receiving the physical prizes, Chad was given cash equivalent to the prizes, which totaled to around $4,000.

People taking part in game shows with the hope of winning cash for urgent needs usually get deeply disappointed. This is because most winners say that it takes weeks and even months to collect won prizes. Danielle Matlin, a 20 year-old college student from Los Angeles took part in the show “Let’s Make a Deal” in 2010, and had to wait for 6 months to collect the $300 cash prize that she had won. She said that she had to wait for an additional 90 days before she received the money.

Sonja Fisher, a 42 year-old lady who took part in the show “Catch 21” in 2010, and won $2,000, had to wait for close to eight weeks before she could receive the cash.

Another drawback about winning prizes from game show contests is that one has to pay taxes, and the funds are never tax -free, as hyped by some of the game shows. Winners should be ready to pay taxes on every prize won, including vouchers and coupons.

The tax to be levied depends on what the show organizers say the prizes are worth. Amounts given to winners in lieu of real prizes, and valuation of all show prizes, is based on fair market value, which is the amount a buyer would offer to a seller for the item in an ordinary market. For unique prizes, rough estimates are usually used.

 

 

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