meazza Posted February 1, 2007 Share Posted February 1, 2007 I have a question. I was watching Deal or No Deal where the Black dude won 212K. Now, I was once told by a friend of mine that American taxpayers are taxed 50% of their winnings on game shows. Is this true? Link to comment Share on other sites More sharing options...
/dev/null Posted February 1, 2007 Share Posted February 1, 2007 I have a question. I was watching Deal or No Deal where the Black dude won 212K. Now, I was once told by a friend of mine that American taxpayers are taxed 50% of their winnings on game shows. Is this true? Don't recall the actual percentage (think it varies by amount won) but for big winnings its like half taxes < RJ Link to comment Share on other sites More sharing options...
meazza Posted February 1, 2007 Author Share Posted February 1, 2007 Don't recall the actual percentage (think it varies by amount won) but for big winnings its like half taxes < RJ For once, Canadians get taxed less than in the US I just need to go win a sh-- load of money on a game show. Link to comment Share on other sites More sharing options...
/dev/null Posted February 1, 2007 Share Posted February 1, 2007 For once, Canadians get taxed less than in the US I just need to go win a sh-- load of money on a game show. Just don't win it on an American gameshow. You'll get doubletaxed (America & Canada) and might end up owing money Link to comment Share on other sites More sharing options...
Taro T Posted February 1, 2007 Share Posted February 1, 2007 Don't recall the actual percentage (think it varies by amount won) but for big winnings its like half taxes < RJ Top federal tax rate is 35%. Top NYS tax rate is 6.85%. So assuming the lottery winnings don't kick you into paying the AMT, in NYS you'd be taxed 41.85% on a big win. Link to comment Share on other sites More sharing options...
JimBob2232 Posted February 1, 2007 Share Posted February 1, 2007 Top federal tax rate is 35%. Top NYS tax rate is 6.85%. So assuming the lottery winnings don't kick you into paying the AMT, in NYS you'd be taxed 41.85% on a big win. Not sure....but you might get stuck paying social security taxes on your winnings as well... Link to comment Share on other sites More sharing options...
/dev/null Posted February 1, 2007 Share Posted February 1, 2007 Not sure....but you might get stuck paying social security taxes on your winnings as well... FICA too Link to comment Share on other sites More sharing options...
meazza Posted February 1, 2007 Author Share Posted February 1, 2007 FICA too Did anyone laugh their ass off when the dude on the boat turned around. I really didn't picture those 2 guys fishing together. Link to comment Share on other sites More sharing options...
Taro T Posted February 1, 2007 Share Posted February 1, 2007 FICA too Unless your profession is "gambler" or more accurately "game show contestant", why would you have to pay employment (SS and medicare) taxes on those winnings? Lotteries and the like are considered "other income", not "self employment" or "wages", so I don't see how you'd have to pay those other taxes on that money. Link to comment Share on other sites More sharing options...
Chilly Posted February 1, 2007 Share Posted February 1, 2007 You actually WATCH that show? Link to comment Share on other sites More sharing options...
meazza Posted February 1, 2007 Author Share Posted February 1, 2007 You actually WATCH that show? Yes. Occasionally I do. Howie Mandel gets me nervous, but I find the show funny to watch. And please don't question me since most of the people here and well around North America spend their time watching people make a fool of themselves to become the next big pop singer. Link to comment Share on other sites More sharing options...
ricojes Posted February 1, 2007 Share Posted February 1, 2007 I usually record the show and fast forward through all the hype, just open the damn case!!!! Deal or No Deal Link to comment Share on other sites More sharing options...
smokinandjokin Posted February 1, 2007 Share Posted February 1, 2007 I won $7500 on a Super Bowl square two years ago, and that went right into the safe in the basement...Tax free! Link to comment Share on other sites More sharing options...
Steven in MD Posted February 1, 2007 Share Posted February 1, 2007 Do not confuse the amount the show withholds and the tax rate. The show withholds 50% and pays that to the government on your behalf. You then receive a 1099 at the end of the year showing the total amount paid and the amount withheld. Depending on your circumstances, you file a tax report and pay the taxes accordingly. Believe it or not the IRS does this to protect you against not having the cash to pay your tax bill. Why would that be the case? Let's just say you invest your winninings in a house...won 212K and you put that into a downpayment on your house...when the tax bill comes, you have no cash..just a house. So they IRS says...take 100K and give it to us to hold...if you are due a refund we will gladly pay it to you....without ANY interest... Link to comment Share on other sites More sharing options...
plenzmd1 Posted February 1, 2007 Share Posted February 1, 2007 Do not confuse the amount the show withholds and the tax rate. The show withholds 50% and pays that to the government on your behalf. You then receive a 1099 at the end of the year showing the total amount paid and the amount withheld. Depending on your circumstances, you file a tax report and pay the taxes accordingly. Believe it or not the IRS does this to protect you against not having the cash to pay your tax bill. Why would that be the case? Let's just say you invest your winninings in a house...won 212K and you put that into a downpayment on your house...when the tax bill comes, you have no cash..just a house. So they IRS says...take 100K and give it to us to hold...if you are due a refund we will gladly pay it to you....without ANY interest... do the same at the track for winnings over $5,000, if at greater than 600-1 odds, but at 28%. I would think that is the rate they would take on this show. In terms of the taxes, I think i read on this here very board that shows like the Price is Right have warehouses filled with merchandise that people win, look at the reatil value associated with it, figure the tax on that value, and say fug it, do not need a that peice o chit enough to pick it up. Now, cash a little differant. Link to comment Share on other sites More sharing options...
Chef Jim Posted February 1, 2007 Share Posted February 1, 2007 I have a question. I was watching Deal or No Deal where the Black dude won 212K. Now, I was once told by a friend of mine that American taxpayers are taxed 50% of their winnings on game shows. Is this true? Actually it's much lower than that. But because he was a Black dude he'll be taxed at the higher rate. Link to comment Share on other sites More sharing options...
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