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HomeFinancialAmy Schneider's 'Jeopardy!' winnings will include a hefty tax invoice

Amy Schneider’s ‘Jeopardy!’ winnings will include a hefty tax invoice

This picture supplied by Jeopardy Productions, Inc. exhibits sport present champion Amy Schneider on the set of “Jeopardy!” Schneider is the primary trans particular person to qualify for the present’s Event of Champions.

Jeopardy Productions | AP

Amy Schneider has been on a “Jeopardy!” roll.

The Oakland, California-based software program engineering supervisor not too long ago surpassed $1.1 million in winnings on the TV sport present, turning into the primary girl and fourth particular person to interrupt the $1 million mark. On Friday, she beat James Holzhauer’s report for the third-most consecutive video games gained, with 33 wins below her belt.

Each time Schneider’s successful streak is up, she’ll seemingly stroll away a rich girl.

She’ll additionally must pay a big chunk of these earnings to Uncle Sam.

“She’s going to have a fairly hefty tax invoice as a result of the revenue she’s earned on the present is abnormal revenue,” stated Megan Gorman, an legal professional and managing accomplice at Chequers Monetary Administration in San Francisco. “She’ll be paying a few of the high charges in the USA on this revenue.”

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How a lot she’ll owe in taxes

Profitable greater than $1 million will place Schneider within the high tax bracket within the nation. On condition that Schneider is probably going a single filer, which means she’ll have a 37% federal tax charge.  

In California, the place Schneider lives and the present is filmed, she’s topic to one of many highest state tax charges within the nation.

Once more, winnings of greater than $1 million will put her within the high tax bracket within the state, that means she’ll owe a further 13.3% — 12.3% is the highest tax charge, and revenue of greater than $1 million is topic to a further 1% psychological well being companies tax, Gorman stated.

After Friday’s sport, Schneider had gained a complete of $1,111,800. With that sum, she’d pay $411,366 in federal taxes and $147,869.40 to California.

That is 50.3% of her winnings gone to taxes instantly. Nonetheless, she’d take dwelling $552,564.60.

“It is a fairly arduous win from a tax perspective,” Gorman stated.

It is excellent news for Schneider that she’s a California resident, although, Gorman defined.

Which means she will not must pay taxes on the revenue in two states, as different winners have needed to. In that case, they’re given a credit score again for the revenue taxes paid in California, which provides a layer of complication to submitting that Schneider can keep away from.

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