Are Winnings on Let's Make a Deal TV Show Considered Gambling Winnings for Taxes?

14 Thanks for explaining this! Quick question - does this mean game show winnings are taxed at my regular income tax rate? And second question - will I owe state taxes on this too, or just federal?

8 Yes, game show winnings are taxed at your regular income tax rate, just like your paycheck or other ordinary income. It gets added on top of your other income, which could potentially push you into a higher tax bracket depending on the value of what you won. You will almost certainly owe state taxes as well as federal. Most states follow the federal treatment and consider game show winnings as taxable income. However, the exact rules vary by state, so check your specific state's tax guidelines. California, where many game shows are filmed, is particularly aggressive about taxing winnings, even for non-residents who appeared on shows filmed there.

14 I'm curious - what kind of expenses were you able to write off? I thought the previous commenter said you couldn't deduct expenses related to winning on a game show?

19 Does taxr.ai handle complex situations? I won on a game show but also had actual gambling winnings from a casino the same year. Not sure how to separate these properly on my tax forms.

11 I was able to deduct some expenses related to the prizes themselves, not the cost of getting on the show. For example, I had to pay to ship some of the furniture I won, and there were registration and title transfer fees for the car. The taxr.ai system identified these as legitimate deductions against the prize value in some circumstances. For complex situations with both game show and actual gambling winnings, that's exactly where taxr.ai shines. It can distinguish between different types of income and explain how each should be reported. Gambling winnings go on a different form (W-2G) and can have gambling losses deducted against them (on Schedule A if you itemize), while game show winnings are reported differently. The system walks you through each scenario separately.

3 How does this service actually work? I've spent hours on hold with the IRS before giving up. Do they actually get you through faster than calling yourself?

5 This sounds too good to be true. The IRS phone lines are notoriously impossible to get through. I've tried calling dozens of times about my audit situation and always get disconnected after waiting for hours. I find it hard to believe any service could magically get through when millions of people can't.

7 The service works by using technology to navigate the IRS phone system more efficiently than we can as individuals. They have a system that autodials and works through the phone tree, then holds your place in line. When they finally reach an actual human agent, they call you and connect you directly. No more sitting on hold for hours! It absolutely does get you through faster than calling yourself. The IRS phone lines are overwhelmed, but their system is persistent and knows the best times to call. I was skeptical too until I tried it. The thing is, the IRS actually does answer calls - just not all of them, and the wait times are ridiculous. Claimyr basically does the waiting for you, and you only get on the phone when there's actually an agent ready to talk.

1 Did you have to do this negotiation before the show aired or after you already won? I'm wondering if it's too late for me since I already received my prizes and the 1099-MISC.

22 You have to negotiate this before accepting the prizes, usually right after the show taping. Once you've signed the acceptance paperwork and received the prizes, it's too late to change to a cash option. At that point, you're liable for taxes on the full fair market value listed on the 1099-MISC. For future reference (or for others reading this), most game shows have staff that will discuss prize options with winners immediately after taping. That's your window to ask about cash alternatives. The cash value offered is almost always less than the stated retail value of the prizes, but it can still be a better deal tax-wise.

4 I sold a jet ski I won on a game show for about 30% less than the reported value on my 1099. My accountant said you can't deduct the loss directly, but she did something with reporting it as a capital loss with a cost basis equal to the fair market value I was taxed on. Definitely talk to a tax professional about this because it gets complicated.

Thanks for sharing your experience! That's really helpful to know about the overvaluation issue. I'm curious - when you won the car, did you end up keeping it or selling it? And if you sold it, were you able to use the actual sale price for any tax purposes, or were you stuck paying taxes on the full $35K regardless of what it was actually worth? Also, I noticed you mentioned checking Box 4 for withheld taxes - I didn't even think to look for that on my 1099-MISC. I'll definitely double-check that when I get home tonight. Did they withhold a significant amount, or was it just a small percentage?

I ended up keeping the car for about 18 months, then sold it for $26,500. Unfortunately, you're stuck paying taxes on the full $35K value from the 1099-MISC regardless of what you can actually sell it for later. The IRS considers the fair market value at the time you won it as your taxable income, not what you eventually get for it. However, when I sold the car, I was able to treat the $35K as my "cost basis" for capital gains purposes. Since I sold it for less than that, I actually had a capital loss of $8,500 that I could deduct (subject to the normal capital loss limitations). So there was some tax relief, just not in the year I won it. As for the withholding - they withheld about 24% of the cash portion of my winnings (I also won $5,000 cash along with the car). So out of that $5K, they kept about $1,200 for federal taxes. It definitely helped reduce what I owed when I filed, but I still had a pretty hefty tax bill on the car's value since no taxes were withheld on that portion.

Welcome to the game show world! I can answer some of your questions from my experience: 1. Most shows provide minimal tax guidance during taping. They'll have you sign paperwork acknowledging the tax implications, but don't expect detailed advice. The 1099-MISC usually arrives in January with little explanation. I'd recommend bringing a list of tax questions to ask the production staff right after your taping. 2. Yes, if you win something substantial like a $30K car, you'll likely need to make estimated quarterly payments to avoid penalties. The IRS expects you to pay as you earn, not wait until April. I learned this the hard way and got hit with underpayment penalties. Consider making a payment for the quarter you win to be safe. 3. I've never heard of anyone successfully negotiating the fair market value after it's been set. The shows usually have appraisers determine these values, and they tend to use full retail prices rather than realistic market values. Your best bet is the cash negotiation that was mentioned earlier, but that has to happen before you accept the prizes. Good luck on your taping! The experience is amazing even with the tax complications. Just be prepared and maybe set aside 25-30% of your winnings' value immediately for taxes.

This is really helpful information, especially about the California 5-day rule! I had no idea that was even a possibility. Just to clarify - does that mean if you're from out of state and win on a California-filmed show, you could potentially avoid owing California state taxes entirely just by leaving within 5 days? That could be a significant savings depending on the prize value. Also, your point about the 24% withholding not being enough is something I hadn't considered. I'm assuming that's because game show winnings get added on top of your regular income, which could bump you into the next tax bracket? Did you end up having to make estimated payments during the year, or were you able to just handle the extra amount owed when you filed your return? Thanks for sharing your Jeopardy! experience - it's great to hear from someone who actually went through this process successfully!