Game Show Tax: How Taxes on Winnings & Prizes Work

Do I Have to Pay Taxes on Game Show Winnings and Prizes?

The short answer: yes, even if it's not in cash. Here's more on how taxes work for game show winnings and prizes.

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Edited by other Updated Mar 24, 2026 How Federal Tax Brackets and Rates Work Capital Gains Tax: Long and Short-Term Rates for 2025-2026 How to Fill Out Your W-4 Form and When to Adjust It

Key takeaways

Key takeaways The IRS considers game show winnings to be part of your taxable income. The larger the winnings, the more taxes you will potentially have to pay. The value of noncash prizes is considered taxable income, too. If you’ve ever dreamed of running the board on "Jeopardy," besting the bonus round on "Wheel of Fortune" or making it to the Showcase Showdown on "The Price is Right," make this part of your fantasy, too: taxes.

Are game show winnings and prizes taxable?

Yes. If you win money or prizes on a game show, the winnings are taxable. Merchandise you win is taxable, too. If you win at least $600, you’ll probably get a 1099-MISC tax form from the entity that awarded the cash prize, and that entity will also send a copy to the IRS . Keep in mind that even if you don’t get a 1099, you still have to report the value of your winnings when you file your annual tax return. AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn more Learn more

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What kind of tax will you have to pay on winnings?

How much tax you pay depends on where you live and how much you win. You’ll need to pay federal and state taxes on the winnings (unless you live in a state without income tax, in which case you'd just be subject to the federal portion). » MORE: Guide to state tax rates and brackets » MORE:

What tax bracket will you be in after winning your money?

You might make considerably more than your normal annual salary in the year you win big, which could put you in a higher tax bracket. Let’s say you win $250,000 as a single filer. Depending on your other taxable earnings, that prize could push part of your income into the 35% or even 37% tax bracket — the two highest. Higher tax brackets mean you're paying additional taxes on that prize. » Want to dream big? Try our lottery tax calculator » Want to dream big?

What if you win something other than money?

Winning prizes on a game show is anything but free. Prizes have a monetary value. For example, let’s say you win an all-expenses-paid trip to Mexico valued at $10,000. Prepare to report that $10,000 and pay taxes on it. The lesson: When you win prizes that are not actual money, it’s important to know exactly what their monetary values are. If you win a noncash prize, you might end up owing more in taxes than you can afford. If you accept the prize and then can’t pay the taxes on it, you could face penalties. You may decide to sell the item to pay the taxes and keep the rest of the money as profit. And while that’s possible, it’s not guaranteed.

Are game show winnings taxed differently from gambling winnings?

In some ways, they face similar fates: Both are income you must report to the IRS. For the lottery or most casino gambling, however, you can deduct your losses — but there are stipulations. When you file your tax return, you’ll need to itemize and be able to substantiate your gambling losses if you’re audited, which means keeping every lottery ticket and casino receipt. Additionally, you can only deduct 90% of your losses. » MORE: How do taxes work on sports betting? » MORE: AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn more Learn more

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How to keep your head above water after winning a game show prize

First and foremost, pay the applicable taxes on any prize you win. It may be a good idea to pay estimated taxes right away on what you win to avoid any possible penalties later. Consider taking cash instead of an object. If you win a vacation valued at $15,000, for example, ask if you can just have the $15,000 instead. That’s because you could owe thousands in taxes, which is a lot of cash to come up with for a supposedly “free” vacation. You may be better off taking the money and then using it to pay for a more affordable trip. Know the exact value of your prize. The entity giving you the prize may slightly inflate the value to entice more people to compete or to create a larger tax deduction for itself. That $15,000 vacation may not really be that expensive. Contest the company’s valuation, if necessary. Don’t be afraid to turn down a prize if it might become a tax burden. If you win a car that comes with a $5,000 tax bill, are you financially able to set aside that much cash for the taxes? Maybe you can sell it and come out ahead, but it’s important to be realistic and not let shiny objects blind you to tax consequences. You can always use cash prizes to cover the associated tax bill, but scrounging for cash to pay the taxes on objects or vacations may make them not worth the trouble. Explore more on Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. Internal Revenue Service. About Form 1099-MISC, Miscellaneous Information. Accessed May 30, 2024. About the author Orem Tina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets. Published in How Federal Tax Brackets and Rates Work By Sabrina Parys, Tina Orem 2025 Tax Brackets and Federal Income Tax Rates By Bella Avila 2026 Tax Brackets and Federal Income Tax Rates By Bella Avila Standard Deduction for 2026: Amounts, When to Take By Sabrina Parys, Tina Orem Capital Gains Tax: Long and Short-Term Rates for 2025-2026 By Sabrina Parys, Tina Orem 25 Popular Tax Deductions and Tax Breaks for 2025-2026 By Sabrina Parys, Tina Orem