Game Show Taxes

[nhbuffbc]

Yippie, it's tax time! I know there are some former WWTBAM winners on the bored, so I thought I'd ask around about taxes.

From what I've gathered, I need to file a non resident form to pay taxes on my winnings in New York. Then I will claim a credit on my state return for the taxes I paid in NY.

Now, I've gathered this info from my accountant aunt, so I assume it's legitimate, but I also wanted to make sure that's what other folks have done in the past.

Thanks for reading and for any advice you might have. Here's to everybody in the contestant pool getting picked up in 2014!

[SpacemanSpiff]

Yippie, it's tax time! I know there are some former WWTBAM winners on the bored, so I thought I'd ask around about taxes.

From what I've gathered, I need to file a non resident form to pay taxes on my winnings in New York. Then I will claim a credit on my state return for the taxes I paid in NY.

Now, I've gathered this info from my accountant aunt, so I assume it's legitimate, but I also wanted to make sure that's what other folks have done in the past.

Thanks for reading and for any advice you might have. Here's to everybody in the contestant pool getting picked up in 2014!

Suprisingly, you don't need to file a non-resident NYS/NYC income tax for game show earnings -- unless, of course, that is your full-time profession.

California is a different matter, where they want to get a piece of your earnings no matter what (unless your state has a reciprocity agreement with California).

[Ritterskoop]

Things change, but here are a few things that have been true in the past.

In 2001, New York did not collect any state income taxes from me. I just paid N.C. their 8% and the feds their chunk. I want to say 25%, but it with charitable donations excluded, I didn't make enough to bump into the next bracket, whatever that is.

I heard that a million-dollar winner of our acquaintance a few years later got a check for $1M with no taxes withheld.

California is different but you'll deal with them another day, perhaps.

Congratulations. It's a nice problem to have.

[tlynn78]

My check was the full amount - paid nothing to NY, substantially more than that to state and feds. This was in 2006 (rec'd check in Jan. 2005)

[Bob78164]

Yippie, it's tax time! I know there are some former WWTBAM winners on the bored, so I thought I'd ask around about taxes.

From what I've gathered, I need to file a non resident form to pay taxes on my winnings in New York. Then I will claim a credit on my state return for the taxes I paid in NY.

Now, I've gathered this info from my accountant aunt, so I assume it's legitimate, but I also wanted to make sure that's what other folks have done in the past.

Thanks for reading and for any advice you might have. Here's to everybody in the contestant pool getting picked up in 2014!

You need to check with someone who specifically knows New York tax law, but my understanding is the same as Spiff's -- I believe that New York excludes game show winnings from earnings (at least for non-residents).

You can find at least one person both knowledgeable on New York tax law and trustworthy with the handle of irasmilo on the Motley Fool's Tax Strategies Board. (There are other knowledgeable and trustworthy people there, but I know that Ira knows New York law.) Registration with the Motley Fool is both free and easy, and over the years I have found the Tax Strategies Board a valuable source of information, some of which I still use. --Bob

[TheConfessor]

I paid nothing to New York. I recommend not making a voluntary donation.

[MarleysGh0st]

I recommend not making a voluntary donation.

Nonsense! If you're not going to be generous after a big game show win, when will you be?

[danielh41]

I'm glad I live in Texas where I don't have to worry about filing a state income tax return or paying state income tax. When I (finally) got my Millionaire winnings check, it was for the entire amount. I put some aside to pay on my federal taxes at the end of the year. Valleycrest Productions sent me a 1099 for my winnings plus about 900 dollars (for the New York trip and the per Diem we got while we were there).

[TheConfessor]

I recommend not making a voluntary donation.

Nonsense! If you're not going to be generous after a big game show win, when will you be?

Several years ago at a Game Show Congress convention, one of the presentations was on the subject of game show taxes, given by Kevin O (who won $2.18 million). He outlined in detail how much he paid to whom in taxes. I think he also set up a small foundation. As I recall, he talked about sending something like $200K to New York, which astonished me. Maybe he just wanted to express his gratitude and generosity. Be careful where you go for tax advice.

Kevin lives in Michigan, so I think he claimed a credit in Michigan for what he gave to New York, but even so, I think the state tax rate would have been lower in Michigan. Fortunately, I live in a state with no income tax. As someone noted, Jeopardy takes a chunk of your winnings for California state tax before they send you a check. I wonder if that changed a few years ago when they held the Tournament of Champions in Las Vegas.

[jarnon]

Thanks guys! This topic saved me a load of cash! I paid estimated tax New York State in December (to avoid a penalty, and get a federal tax deduction for 2013). But now I expect to get it all back. Here's what the New York Times said:

New York, where ''Millionaire'' is taped, will not claim taxes on quiz-show winnings from nonresidents, because the prize money does not come from a ''business, trade, profession or occupation,'' according to Marc Carey, a spokesman for the State Department of Taxation and Finance.

Pennsylvania doesn't tax game show winnings.

[Bob Juch]

Thanks guys! This topic saved me a load of cash! I paid estimated tax New York State in December (to avoid a penalty, and get a federal tax deduction for 2013). But now I expect to get it all back. Here's what the New York Times said:

New York, where ''Millionaire'' is taped, will not claim taxes on quiz-show winnings from nonresidents, because the prize money does not come from a ''business, trade, profession or occupation,'' according to Marc Carey, a spokesman for the State Department of Taxation and Finance.

Pennsylvania doesn't tax game show winnings.

Since I was living in New York when I was on, even though I taped in Florida, I had to pay New York state taxes.

[nhbuffbc]

Thanks everybody for your input.

I'm still a little conflicted. My friend Howard who was on the show about 7 or 8 years ago didn't pay to New York and they actually came after him for the money. That doesn't seem to be the experience for everyone else here.

I think I may follow up on that Motley Fool lead to get additional verification. Thanks again!

[ladysoleil]

I actually work in NYC. If I did win anything, I'm guessing NYC is going to want a cut.