If I won $1,000,000 on “Who Wants To Be A Millionaire?”:[list=1][li]Is the check Regis hands over valid?[/li][li]If not, do I get a real check for $1,000,000.00, or does the show withhold taxes?[/li][li]What taxes am I liable for, and at what rate?[/list=1][/li]
Bottom line: what’s the bottom line? How much would I net from winning a million?
The Canadians. They walk among us. William Shatner. Michael J. Fox. Monty Hall. Mike Meyers. Alex Trebek. All of them Canadians. All of them here.
For starters, what’s your tax bracket?
If you did win big money you should get some warning from the provider. If they didn’t make you aware of the tax bite they’d be opening themselves up for litigation.
If you win or earn $1MM in a single year, your federal marginal tax rate is 39.6%.
That said, the show will withhold at a different rate, determined by law (IIRC, apx. 20%). Any difference you’ll have to pay at tax time.
Assuming for the sake of this thread that $1MM is appreciably more than the winner made last year, the newly liquid person will not have to pay a penalty for underpayment, despite the large amount owed on April 15.
You also must pay state income taxes, probably in the state where the income is earned. (In this case that means New York, figure on 12% State and another 2% city taxes.)
There is no obligation to pay FICA, Medicare or similar on the amount won.
Livin’ on Tums, Vitamin E and Rogaine
It was answered in another message, but the guy came back with 550k bucks. You know, he works for the IRS, that winner.
I read the official rules a few days ago on www.abc.com. IIRC, you don’t get the money until six days after the taping.