How to fill out taxes if you won money on TPiR (or any CA-based game show)

[LiteBulb88]

We've had quite a few people win stuff on The Price is Right and other California based game shows in the past year. Congrats! If you're one of them, I wrote a guide about what tax forms to fill out and some advice on how to fill them out here:

https://stoseontpir.blogspot.com/2024/01/guide-to-taxes-for-california-based.html

I'm happy to answer any questions anyone has about this as I am licensed to help people do their federal taxes. However, I must add the disclaimer that I am not a tax professional.

Good luck!

[C8]

WOW.

I have not won anything on a game show but I can tell this is thorough and VERY useful. I'm surprised no one has done this before. Hats off and a round of applause.

[Thatgameshowguy]

This actually reminded me that I haven't gotten my 1099-MISC from the show yet! I got my 592-B but not the 1099-MISC! If it's not here in a few days I'll have to email the show.

[Nick]

Interesting stuff.  I would like to see treatment on non-US citizens (Canada specifically) added.  Perhaps there are those here who can speak from experience.  I would think a W-8BEN would be the place to start, except game show winnings do not constitute taxable income in Canada, so there's no double taxation scenario to avoid.  Does the U.S. Government and the State of California, then, feel they are entitled to tax non-residents when they are not being taxed elsewhere?

[therealcu2010]

Does the U.S. Government and the State of California, then, feel they are entitled to tax non-residents when they are not being taxed elsewhere?

Game show winnings are still considered as taxable earned income in both California and the United States and are still subject to income tax in the jurisdiction it was earned. The fact that someone lives elsewhere is irrelevant. It was earned in California.

We deal with this at the local casino all the time with a large contingent of Canadians who come over here.

[LFAT since diapers]

Thank you!

I was told by the friendly folks in the prize department that the CA taxes would be cut from the cash portion of my winnings and paid. Perhaps I misheard whilst in the fog of the day?

[Thatgameshowguy]

Nope, that's the case for you! If you're considered a CA Non-Resident you're required to send in 7% for withholding, which is the amount shown on your 592-B. If you win cash or cash-in-lieu, they'll use that to cover the withholding, otherwise you have to send in a cashier's check or money order in to the accountants within a month of your airdate.

[LiteBulb88]

Thank you!

I was told by the friendly folks in the prize department that the CA taxes would be cut from the cash portion of my winnings and paid. Perhaps I misheard whilst in the fog of the day?

I had the same misunderstanding and the state of Utah, umm, "gently" corrected me. Those are estimated taxes that were withheld and paid to the state of California, similar to how your job withholds estimated federal tax. You need to file a CA non-resident tax return to reconcile the estimated tax with the actual tax you owe. Based on a quick back of the envelope calculation, if you were single and made $145,525.65 (including TPiR winnings) or less last year, or if you were married and jointly made $291,051.30 or less, you will get money back from CA. If you made more than either of those figures, you will owe CA money. Again, that's a back of the envelope calculation.

[Bluescreen_ODeff]

I used TurboTax for my federal tax prep this year, and they are a BIG help when it comes to prizes.

Last summer, I won a $600 commercial vacuum cleaner at a trade show, and TurboTax listed that on Schedule 1 Part 1, 8i. 

TurboTax also helped me separate my lottery scratcher winnings (about $150), that, as it exactly says, goes under "Gambling".

[priac]

I won $2835 in merchandise in 2019.  I live in IL.   I had to show proof to the prize dept that i remitted the CALIFORNIA STATE income tax on said merchandise, before they would release the merchandise to me. This is because I earned the $2835 in Cali.   IF your home state has a higher state income tax rate than Cali, then you owe that much more.   Regardless, Cali gets there State income tax on income earned in their state.

Separately, (on the honor system) I had to declare the $2835 as ordinary FEDERAL taxable income on my 2019 Form 1040.

[Thatgameshowguy]

This actually reminded me that I haven't gotten my 1099-MISC from the show yet! I got my 592-B but not the 1099-MISC! If it's not here in a few days I'll have to email the show.

Not that anyone is that interested in this story, but it turned up today. Figured I'd share.

[mrbrown2195]

Game show winnings are still considered as taxable earned income in both California and the United States and are still subject to income tax in the jurisdiction it was earned.

Unless you're a citizen of the United States, Eritrea, or North Korea, where you'll always be taxed on your income, regardless of where it is earned. One of those perks of being a citizen!

[htmlcc92]

At least as a Washingtonian we don’t have a state income tax, but if I won enough in California I’d be taxed by California and the federal government if I understand right?

[gamesurf]

I sneakily managed to win under $1,500 and avoid the threshold where California would automatically take 7%.

(Not saying I owe $0 to CA though.)

[LiteBulb88]

At least as a Washingtonian we don’t have a state income tax, but if I won enough in California I’d be taxed by California and the federal government if I understand right?

Correct. The minimum amount you'd have to win to be required to report it to CA and on your federal taxes is $0.50 (50 cents). Less than that, and it rounds to $0 and is thus non-reportable.