Winning game show prizes may come with strings attached
Los Angeles, CA (KTNV) -- The Price is Right is one of the most popular game shows on Television. But after all the excitement of winning, it turns out, there are a lot of headaches.
It's the moment game show dreams are made of: Getting called on down to the Price is Right. But imagine the frustration when you learn if you win any prize, there's some strings attached.
Andrea Schwartz was thrilled when she made it all the way to the iconic game show's final round and then won.
She said she quickly learned that in addition to local and federal taxes that had to be paid, California law required her to pay state income tax on her $33,000 prize before she could even claim her winnings.
The Price is Right had no comment about the taxes involved.
Schwartz said she was shocked, "I remember having an image of myself walking away in my convertible with a stack of cash in my hand, but that didn't happen."
Experts said the IRS considers prizes and giveaways taxable income for all TV contestants and guests.
If you can't afford the taxes, you're allowed to forfeit the prize.
Schwartz said she chose to sell most of her prizes, and still walked away with enough money to start her own food truck business.