If the value of your prize is $600 or more, you will be required to pay federal taxes on the amount. In fact, the same rules apply to game show winnings as other types of contest winnings. Many folks don’t know that there is no such thing as a free lunch when it comes to winning items on a game show. Many people dream of going on to The Price is Right and winning a new car, maybe a new washer and dryer, or possibly even a luxurious vacation. Of course, tax laws are subject to change, so it’s always a good idea to consult with a tax professional before claiming your prize. Similarly, prizes worth more than $500 are taxable income in Canada. If you live in a state that imposes income taxes, you may also be required to pay state taxes on your winnings. The US and Canada are slightly different.įor example, prizes valued at $600 or more are subject to federal taxes in the United States. The answer depends on the vehicle’s value and your country.

You may be surprised at the bill you’re about to receive. Before driving off the lot, take a look at the fine print. If you’re fortunate enough to win a car, you may wonder if you’ll have to pay taxes on your prize.

What are the taxes on gambling winnings?.

What are the taxes on lottery winnings?.

What happens when you win a car in a game show?.

How much money do you have to win for it to be taxed?.

Winning a Car in a Different State than Your Residence.

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