job41475
Made It and Played It 
Posts: 89 
Airdate: 01/28/19
Winnings: $16,800
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Post by job41475 on Jul 26, 2013 13:16:29 GMT -5
Hi,
A some of you know My wife was on WOF earlier this year and did well. We just received he check today and noticed that California State Tax was withheld but federal wasn't. Anyone have an idea how much we should expect to be taken out federally out of 48k total?
Thanks,
Jerry
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ten96lt
Made It and Played It
Posts: 233
Airdate: 04/07/2014
Winnings: $9,300
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Post by ten96lt on Jul 26, 2013 18:22:25 GMT -5
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jmdarrall
Made It and Played It
Waited 30 years for this moment! Thanks, Wheel!
Posts: 446
Airdate: 04/25/13
Winnings: $17,250
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Post by jmdarrall on Jul 27, 2013 17:39:57 GMT -5
Federally? Up to 50%, but that's if you win a lot. Most likely, you'll probably be taxed anywhere from 30-40%. The CCs told us (and many financial planning sites) that it's a smart move to put half of your cash winnings in savings. There are a couple of things you need to remember, too.
1. While California tax was taken off the top, your home state taxes were not! You'll be responsible for paying New York state taxes on your winnings. However, you may be able to claim the California tax taken off the top as a deduction (out-of-state state taxes are generally deductible).
2. If memory serves me right, Robyn won a non-cash prize. The "fair market value" of that prize will count toward taxes, too, and it may not be the announced value! Have Robyn check her contestant paperwork for important details.
In all seriousness, do what I'm doing, and plunk down a hundy or so to speak with an accountant who can prepare your taxes and navigate the complications of this.
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WooWho
Made It and Played It Producer 
Panel Quizmaster
"They better NOT be booing me!"
Posts: 2,537
Airdate: 04/28/2014
Winnings: $41,400
SPIN ID: JW1336114
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Post by WooWho on Jul 28, 2013 14:10:13 GMT -5
I can't speak for Wheel, but I've been on The Price is Right and Jeopardy! previously, and Jonathan is exactly right. Granted, considering I was a student at the time, they didn't tax me very much on either the state or the federal level.
One other thing I want to address is the forfeiture option--it's probably too late to submit one, considering the show has aired, but I figure I'd mention it for any prospective contestants' future reference.
After I won on TPIR, I was allowed to forfeit any prize I won up to 10 days after the tape date. You can voluntarily refuse a prize you won, and it'll be like you never won it at all--you don't get anything in return for a forfeit, but you're not liable for the taxes on said prize. (The 10-day period may be different depending on the show.)
Example: As advertised, I won a total of $34,021 in prizes on TPIR. Exactly $25,000 of that was in the form of a 5-hour private jet flight, which would've been a huge tax burden (I never bothered calculating the actual number, but suffice it to say it would've knocked a significant chunk out of my cash winnings). I forfeited that prize. I still accepted, however, a $1500 TV and a $900 chair, along with the $6,500 or so in cash I won. The final taxable total was only $9,021. After withholding 7% CA taxes, I then paid federal and state taxes on just the $9K.
So if you end up winning, say, a trip that you can't find the time to take (and that you can't sell), forfeiting it may not be a bad idea.
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job41475
Made It and Played It
Posts: 89
Airdate: 01/28/19
Winnings: $16,800
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Post by job41475 on Jul 28, 2013 21:16:10 GMT -5
Thanks Everyone. We appreciate the feedback!
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ten96lt
Made It and Played It
Posts: 233
Airdate: 04/07/2014
Winnings: $9,300
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Post by ten96lt on Jul 28, 2013 23:39:12 GMT -5
Forgot to mention when I said, "Tax liability" I meant federal, forgot state. I know in Illinois where I live, what you paid in another state is credited towards the IL bill (but check your state's rules), so since CA will most likely be at or above 5%, I won't have an additional tax liability with them beyond California.
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