Do Americans Pay US Taxes on Canadian Game Show Winnings? Prize Money from Foreign TV Shows

3 Thanks for the detailed response! So there's no special "prize money" category for taxes? It's just regular income? Also, what if the Canadian company doesn't send her a 1099? She mentioned they gave her some paperwork but it wasn't a US tax form.

8 There's no special prize money category - it's considered ordinary income and gets taxed at your cousin's regular tax brackets. The IRS views game show winnings similar to lottery winnings or gambling proceeds. Regarding documentation, a Canadian company likely wouldn't issue a US 1099 form, but might provide a T4A slip (Canadian equivalent) or some other receipt of payment. Regardless of what paperwork she receives, she still has a legal obligation to report the income. She should keep all documentation from the show producers as proof of the amount and date received.

17 How does it work with foreign tax documents? My daughter won a prize in a UK gameshow and the paperwork looks completely different from US forms. Would this service understand British tax documents too?

21 I'm curious - did it help you save on overall taxes or just make the filing easier? I'm considering using it for my own international income situation but wondering if it's worth it compared to just hiring an accountant.

12 It absolutely works with British tax documents! Their system can process tax documents from most major countries, including the UK. You just upload the forms and it identifies what they are, then explains your US tax obligations based on the foreign documentation. Really helpful for navigating cross-border situations. The service saved me money in two ways - first, I didn't need to hire an international tax specialist which would have cost hundreds of dollars. Second, it found a treaty provision between the US and Canada that reduced my tax liability by about $900. The software I was using before completely missed this deduction opportunity.

7 So they just wait on hold for you? How is that better than just calling yourself? Sounds like a waste of money for something you could do yourself if you're just patient enough.

19 How do they actually get you through faster? I thought the IRS phone system was the same for everyone. Is this some kind of priority line or are they using some trick to jump the queue? I'm skeptical this would work better than just calling early in the morning.

14 They don't just wait on hold - they use specialized technology to navigate the IRS phone systems that are optimized for getting through faster. It's not about patience - it's about not wasting your day. The average IRS hold time can be 2+ hours during tax season, and many people get disconnected after waiting. They don't use any "tricks" or priority lines. Their system continuously monitors IRS phone traffic patterns and call volumes to identify optimal times to call. They also have technology that navigates the complex IRS phone menus and holds your place in line. When an agent becomes available, you get a call connecting you directly. It's completely legitimate - they're just more efficient at navigating the system than individuals calling randomly.

2 What's the deadline for filing the FBAR? Is it the same as regular tax filing? And is this something you can do through regular tax software like TurboTax?

5 The FBAR deadline is April 15, but there's an automatic extension to October 15 if you miss the initial deadline. It's not filed with your tax return - it's a separate filing with FinCEN (Financial Crimes Enforcement Network). Most tax software does include FBAR filing options now, including TurboTax, but you need their premium or international versions. Alternatively, you can file it for free directly on the FinCEN website. It's called FinCEN Form 114, and it's only available through their online system called the BSA E-Filing System.

4 Good point. I think Canada does automatically withhold taxes from prize winnings for non-residents. My uncle won a small prize in Vancouver and they took something like 25-30% right off the top before giving him the money.

This is really helpful, thank you! I hadn't thought about the exchange rate timing - so she uses the rate from when she actually received the check, not when the show aired or when she won? Also, do you know if there's a specific place to look on Canadian tax documents to see how much was withheld? She got some paperwork but it's all in French and we're not sure what we're looking at.

Exactly right on the exchange rate timing! She should use the rate from when she actually received the payment, not when the show was filmed or aired. The IRS is pretty specific about this - it's the date of receipt that matters for currency conversion. For the Canadian paperwork, even if it's in French, look for terms like "retenues" or "impôts retenus" which mean "withholdings" or "taxes withheld." There should be a line showing the gross amount and another showing what was deducted. You might also see "T4A" somewhere on the document - that's the Canadian equivalent of a 1099. If you're having trouble reading the French documents, you could try using Google Translate on your phone to scan the text, or contact the production company for an English version. Most Canadian companies dealing with international contestants can provide documentation in English if requested. The key numbers you need are: the gross prize amount in CAD, any taxes withheld in CAD, and the exact date of payment. With those three pieces of information, a tax professional can help her properly report everything and claim the foreign tax credit if applicable.

This is such valuable insight! The timing issue you mentioned is really important - I hadn't considered that she might owe US taxes even before getting any refund from Canadian withholdings. Quick question about the exchange rate documentation - did you have to submit proof of the rate you used when you filed, or just keep it in case of audit? And when you say the foreign tax credit calculations can get complicated, what should someone watch out for? I'm helping my cousin navigate this and want to make sure we don't miss any pitfalls that could cause problems later. Thanks for sharing your experience - it's so helpful to hear from someone who's actually been through this process!

You don't need to submit the exchange rate documentation with your initial filing - just keep it in your records for potential audit. I used the Federal Reserve's H.10 historical rates and printed/saved a copy showing the CAD to USD rate on my payment date. Regarding foreign tax credit complications - the main thing to watch for is that the credit is limited by your US tax liability on that foreign income. So if Canada withheld 25% but your US effective rate on that income bracket is only 20%, you can only credit up to the US tax amount. Also, if she has other foreign income during the year, it all gets calculated together which can affect the credit amount. Another pitfall: make sure the Canadian withholding was actually "income tax" and not some other type of tax or fee. Only legitimate foreign income taxes qualify for the credit. Sometimes game shows have other deductions that aren't creditable. I'd strongly recommend she work with a tax professional for at least the first year - the forms can be tricky and mistakes are costly. Once you understand the process, subsequent years are much easier to handle yourself.