There is no such thing as a free lunch ... or an all-expenses paid trip to Acapulco. That's what "The Price Is Right" contestant Andrea Schwartz found out when she scored $33,000 worth of prizes, including a shiny red Mazda 2 compact car, a pool table, and a shuffle board table, on the Price is Right. Contestants won't quite know what hit them if they make it onto the show. "It's a whirlwind, they kind of shove you around, and then you are suddenly in the parking lot, saying, 'I just played Plinko.'" You may not be prepared for the hefty taxes you'll owe before picking up your prize, either.
"Yeah, you don't just drive off the back lot with the car like I thought the entire time I was growing up," Schwartz said in a recent interview. "After the show, you fill out some paperwork and basically sign your life away. You say that you're going to pay the taxes on it. If you win in California, you have to actually pay the California state income tax ahead of time." Uncle Sam will want his cut as well, and if the prize is big enough, it could even bump you into a higher federal bracked further chipping away at your win.
While it's not news that people pay taxes on winnings, there are a couple of reasons it can be more jarring on The Price Is Right. You aren't guaranteed to be a contestant–you're sitting in the audience one minute, and then the next, you're playing for the showcase. Plus, the show awards trips and products that you may not be interested in. That $5,000 BBQ? You don't need it, and might not pay as much for it on the open market if you did—but you're still on the hook for taxes on the full retail value."Yeah, you don't just drive off the back lot with the car like I thought the entire time I was growing up," Schwartz said in a recent interview. "After the show, you fill out some paperwork and basically sign your life away. You say that you're going to pay the taxes on it. If you win in California, you have to actually pay the California state income tax ahead of time." Uncle Sam will want his cut as well, and if the prize is big enough, it could even bump you into a higher federal bracked further chipping away at your win.
Schwartz's car was shipped from Los Angeles to a dealer near her home in Reno, Nevada. Before she could claim it, she had to pay $2,500 in taxes. Luckily, she had won $1,200 in cash playing the show's Plinko game and also had some money in savings – but not all contestants have the resources to even collect their winnings. "I think a lot of people don't understand what they're getting themselves into. They're just like, 'Oh my God, I'm going to win a bunch of stuff,' and then they're going to have to forfeit their prizes because they can't afford to pay the taxes on them," she said. Yahoo! Shine could not reach the program for comment.
