Do Price is Right contestents pay taxes on their winnings?

[cmf21]

This morning, my roomate and I were watching The Price is Right. He starts telling me that the contestents have to pay taxes on their winnings and if they don't pay, don't receive their winnings. Is he right?

 

[iamwiz82]

just like when you win any major prize, you have to pay taxes

 

[Hammer]

yes

 

[ElFenix]

yup

 

[NogginBoink]

I believe the gameshows report winnings to the IRS, so there's no way for the contestants to hide 'em.

 

[Ausm]

No there is a claus in the constitution which exempts "the price is right" winners from all taxes

Ausm

 

[compudog]

You get money, you pay taxes. Some state lottery winnings are state tax exempt, but not federal.

 

[chin311]

yesh you have to pay taxes, but thats a small price to pay when for instance you win a 20$k car!!1 ill pay taxes, no prob!

 

[Ranger X]

That's why some contestants opt to take some of their prizes home because of taxes.

 

[ElFenix]

Originally posted by: Ranger X
That's why some contestants opt to take some of their prizes home because of taxes.

you have to pay taxes on the value of the items

 

[MattCo]

Can you request the cash value of an item? If I won a Viper GTS I doubt I would be able to afford the taxes on it.

-MC

 

[royaldank]

Also, a lot of gameshows welcome actors to participate. Before appearing, though, they have the option of taking what they win or just getting the union daily pay rate.

Thus, you might be watching someone on Hollywood Squares that wins a new car and lots of money. But, they signed on for the daily wage so all they get it a couple hundred dollars no matter what they "win." Appearing on gameshows is just another way to get your face out there if you're an aspiring actor.

 

[dullard]

I've read several stories of people winning prizes that they cannot afford the taxes on and had to sell them (none of the stories were from Price is Right though). It is treated by the government as income and thus yes you must pay taxes. Most offers you see on TV will have that fine print stating that the winner must pay all taxes (if you can read the fine print that is).

 

[Maetryx]

I'll bet a bank would loan you 1/3 the value of a Viper GTS so you could pay the taxes on it. After all, they get to repossess a Viper GTS when you screw up.

 

[AthlonXP]

Originally posted by: Hammer
yes

 

[Joker81]

If the contestants didn't pay the taxes the show would have to pay the taxes on it and they don't want to.

 

[brtspears2]

Originally posted by: Joker81
If the contestants didn't pay the taxes the show would have to pay the taxes on it and they don't want to.

Why? Don't the shows get the items as a free plug?

 

[Yax]

The Price is Right, what a game show. They make it look like the contestants were randomly selected from the audience. What alot of bull. They interview each person and place them around the audience, then call their names to make it look like its all random.

That's TV for you.

 

[Yax]

Oh yeah, also:

Here's how you can get on the Price is Right (Guaranteed):

1. Overweight black lady between 30-60 from midwest. Must be cheerful and have the ability to jump up and down several times.

Edit: when they interview you, if you're number 1 above, just answer every question with: Why, I watch this show!

2. Old white person with a smile.

3. Young good looking girl (average or better only).

4. In the military and came to the show with a party of at least 5, all must be dressed in uniform.

5. Fireman, Police officer, or someone who looks big and strong.

6. Mexican or Mexican American with spanish accent.

No chance if you're:

1. Asian male.
2. Indian
3. Successful business man.

Good luck if you decide to go to the show.