- Days left

What Happens When You Win 'The Price Is Right'

×
We've all dreamed of winning it big -- whether it's the Powerball lottery or a popular gameshow. But the sudden euphoria that erupts after learning you've won millions of dollars, a new car or a brand new dining room set can quickly turn into a headache went it comes to collecting your prize.

Just ask Andrea Schwartz, who appeared on "The Price Is Right" last year. "It was a nerve-wracking experience, and I've never been more embarrassed watching myself of television," Schwartz told the A.V. Club website.


In the end, she walked away with $1,200, a Mazda 2 subcompact, a pool table, a shuffleboard table and some earrings -- $33,000 worth of prizes in all. But as A.V. Club reports, there was a lot of red tape involved in getting those prizes home.

"You don't just drive off the backlot with the car like I thought the entire time I was growing up," she said. Rather, contestants fill out paperwork that notes that they agree to pay taxes on the prizes they won. Depending on where you live, you may be on the hook for state taxes in addition to federal taxes on the value of the merchandise and any cash you might've won.

For more on Schwartz's experience, and the ins and outs involved in being a prize winner, read the rest of the A.V. Club's Q&A with the big winner.


Increase your money and finance knowledge from home

What is Inflation?

Why do prices go up?

View Course »

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

TurboTax Articles

Will Medicare/Medicaid be Impacted by ACA?

The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.

8 Things You Think Are Tax Deductible That Aren't

There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

What are 1095 Tax Forms for Health Care?

In 2014 the Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.

Add a Comment

*0 / 3000 Character Maximum

368 Comments

Filter by:
Brian Sleider

This just in, You are taxed on contest winnings more on this and other non news at 11.

August 21 2013 at 8:12 PM Report abuse rate up rate down Reply
Paul

Geez, take it or leave it. Seems like a waste when there are people who wouldn't mind buying those things for just the tax amount. She's part of the middle class in which you make payments with interest on things for much more than they're worth and rarely end up owning them. Why? Because people refuse to sacrifice by saving up and actually paying less for things. They only ever have enough to cover a payment.

August 19 2013 at 2:31 AM Report abuse rate up rate down Reply
John Lutz

Y E PPPPPPP.......

August 19 2013 at 2:15 AM Report abuse rate up rate down Reply
Sunny

The game shows should give the contestants the money to pay the taxes on the prizes. Even if they have to give out less expensive prizes in order to do that. They can advertise that the contestants receive the prizes with all taxes paid.

August 19 2013 at 1:19 AM Report abuse +1 rate up rate down Reply
2 replies to Sunny's comment
abourge458

Problem here is.... That $$$'s paying the taxes then itself hbecomes a won gift, and you'd owe taxes on IT!
The only way out would be...
Say the tax on a car won came to $2,000. They'd have to give you something like $2500 extra. ( $2,000 to cover the car tax, plus $500 more to cover tax on the now $2500 bonus "gift" . )
If they just gave you $2,000 for car tax, you'd owe the IRS tax on the $2,000 "Income."

August 20 2013 at 1:30 PM Report abuse rate up rate down Reply
rohrscheibcroh

some of the prizes I could not use any way like a trip I would not want or a yard furniture, I would not go on it any way

August 01 2014 at 3:29 PM Report abuse +1 rate up rate down Reply
metusmetu

Isn't it just a "LOVELY COUNTRY" we live in?? Not only are they trying to take away the food stamps from children, elderly, and disabled, .....they tax the he!! out of you for winning prizes on a game show, or if you manage to scrape up $2 for a lottery and win, they take over half the money "YOU" won!! Other countries don't do this,......why does the U.S.??!
Never fear though folks, your fearless leader will continue to send weapons, and a couple billion dollars to Egypt so they can continue to kill each other, and children and old people can starve to death here!!!!!!!!!!!

August 19 2013 at 1:07 AM Report abuse +2 rate up rate down Reply
1 reply to metusmetu's comment
bobravv

You're free to leave.

August 19 2013 at 1:14 AM Report abuse rate up rate down Reply
1 reply to bobravv's comment
user73493

YOU leave. You're the one supporting all this nonsense. Spying on American citizens without a warrant, blowing up American teenagers without even bothering to go to court first, spending trillions we don't have, enslaving our grandchildren to insane levels of debt--this is on you and people like you. So no, YOU leave. Stop trying to steal freedom and prosperity from the rest of us.

August 19 2013 at 1:26 AM Report abuse -2 rate up rate down
Janet Nicholas

Yep, I stopped watching maybe 17 years ago. But, I held on to Comcast for 12ish more years before I said this is stupid. I actually had Cable for 7 more years for free because they said it was too much trouble to turn off, until the end of June this year. Do I miss you, or the bill? Um, NO!

August 19 2013 at 12:49 AM Report abuse rate up rate down Reply
watersportz1

as far as this story goes-----duh

August 19 2013 at 12:34 AM Report abuse rate up rate down Reply
danielsdad619

Just another example of this government stealing every bit they can. Our government is now more like a crack head than a governing body. They make rules for everybody else, except themselves, tax everything including death and then try over and over again to steal the rest. This government is out of control and needs to be stopped! By any and all means before they drive this country off he cliff.

August 19 2013 at 12:16 AM Report abuse +3 rate up rate down Reply
1 reply to danielsdad619's comment
metusmetu

Unfortunately I think it is too late! Unless the people of the U.S. mount a huge Civil War against the ............well, you know who..

August 19 2013 at 1:11 AM Report abuse +1 rate up rate down Reply
BOB

It's called "Win" to "Lose"

August 19 2013 at 12:07 AM Report abuse +1 rate up rate down Reply
leftydap52

...and what moron didnt know this..?

August 18 2013 at 11:54 PM Report abuse -1 rate up rate down Reply
1 reply to leftydap52's comment
metusmetu

Tell us, oh mighty Guru,........what other great and wonderful things can you impart to us lowly beings,............we're not worthy of such a great and wonderful mind such as yours!!

August 19 2013 at 1:13 AM Report abuse +1 rate up rate down Reply