$500 Bonus question

[Angel450]

As we all know that when a contestant gets the price exactly right on a One Bid they get a $500 Bonus.   My question is does the contestant get to keep the $500 after it is given them or does the contestant have to give the $500 back after they leave the stage?

[Teddy]

The host has only one set of five $100 bills for an entire episode, so the contestant has to give it back after they've played their pricing game; this is done in case there is another perfect bid later on in the same episode. The show will mail a check for $500 to make up for this.

[SteveGavazzi]

It's not "to make up for it."  No game show gives contestants their winnings on the day of taping.

[TheGRVOfLightning]

The host has only one set of five $100 bills for an entire episode, so the contestant has to give it back after they've played their pricing game; this is done in case there is another perfect bid later on in the same episode. The show will mail a check for $500 to make up for this.

Also prior to Season 38 they had to give it back if they played Barkers Markers (Make Your Mark)

It's not "to make up for it."  No game show gives contestants their winnings on the day of taping.

Yep. Considering the fact that a contestant may have cheated no show would do such action.

[moneygamelover]

Not to mention the tax issues and paperwork. Although the $500 bonus may not be taxed. I believe prizes under $600 are not taxed.

[themountainclimber]

Not to mention the tax issues and paperwork. Although the $500 bonus may not be taxed. I believe prizes under $600 are not taxed.

Well honestly, if you bid perfectly in Contestant's Row, you're sure to be winning more than $600 in prizes.

[PimpinJC]

Not to mention the tax issues and paperwork. Although the $500 bonus may not be taxed. I believe prizes under $600 are not taxed.

That's false.  All winnings are subject to taxation, as winnings are considered income, regardless of how much you win.  However, it's not necessary to report winnings immediately if they're under $600.  You're basically trusted by the IRS to report this yourself when you file your taxes.  Now do people follow this rule?  Of course not.  But on a show with a wide audience like Price, you're better off reporting it.

Of course, like mountainclimber said, your question is a moot point, since the show doesn't offer an item up for bid under $100.  Which means the $500 bonus will push your winnings above $600.  Which means your winnings are taxed.

[JayC]

But isn't each prize considered separate (so the $500 bonus and the item up for bids would be separate entities)?  And if the contestant declines the item up for bids prize, it's a moot point anyway.

[pannoni1]

I've always believed that the cash seen on LMAD, Name That Tune, The Joker's Wild, Scrabble (prior to Chuck Bucks), $ale of the Century (including the big cash cases) that were given to contestants were real since on LMAD there used to be actual $500/$1000 bills, and that all taxes would still be reported backstage. But I'd find it hard to believe that in the entire history of game shows that not one show gave out actual cash for the contestants to keep, especially since in The Joker's Wild, the Face the Devil round consists of just studio audience participants.

[wink87]

I read somewhere that cheques used to be handed out to audience participants on Tattletales as they were leaving the studio. I would assume those would be taxed as well, no?

[Ivoryman86]

I read somewhere that cheques used to be handed out to audience participants on Tattletales as they were leaving the studio. I would assume those would be taxed as well, no?

Also, Beat the Clock once they went to the All-Star format.

[SteveGavazzi]

I'm not saying it's never happened in the history of the genre...Tattletales is probably the most obvious exception, given that a third of the audience won money.  Still, though, you're not going to find a program today where it's standard practice to hand out winnings during the taping.

[Ton80]

You're basically trusted by the IRS to report this yourself when you file your taxes.  Now do people follow this rule?  Of course not.  But on a show with a wide audience like Price, you're better off reporting it.

Someone will correct me if I'm wrong, but doesn't the show report your winnings to the IRS themselves?  Don't they also send the contestant a Form-1099 to show the amount reported to the IRS?

I don't think it's simply a matter of "trust" for you to report your winnings.  The IRS already knows what you won.  If you don't report, you will likely receive a nicely worded letter and maybe a little audit.

[Teddy]

Also prior to Season 38 they had to give it back if they played Barkers Markers (Make Your Mark)

And let's not forget Shell Game (before it went to the "cash=grand prize" format in Season 39)

[Axl]

I'm not saying it's never happened in the history of the genre...Tattletales is probably the most obvious exception, given that a third of the audience won money.  Still, though, you're not going to find a program today where it's standard practice to hand out winnings during the taping.

And it's telling that even then, they didn't just hand out cash, but went to the trouble of cutting a check for every single person.  To hand out cash on any program would be an accounting nightmare and probably not allowed by Standards and Practices anyway.

Someone will correct me if I'm wrong, but doesn't the show report your winnings to the IRS themselves?  Don't they also send the contestant a Form-1099 to show the amount reported to the IRS?

The show is only required to file a 1099 (which goes to both you and the IRS) if the winnings are at least $600.  That's where people get confused and think that winnings under $600 are not taxable, which isn't true.  I believe they do have to report ALL winnings to the California Franchise Tax Board because they have to do withholding for all state income.

But isn't each prize considered separate (so the $500 bonus and the item up for bids would be separate entities)?

No, income is based on calendar year.  The IRS doesn't count every single paycheck you get from your employer separately.  You report the sum of your entire annual income from that source.