The Price is Right, Sort of…
For one lucky Canadian, the price was right. Regina, Saskatchewan native Amanda Ruller was recently seen on The Price is Right and won “a brand new car!” But winning a car on a game show isn’t free.
As far as the IRS is concerned, so-called “winnings” on game shows like The Price is Right are actually considered income. As a result, Canadians and other non-U.S. residents who appear on The Price is Right or any other U.S. game show and win cash or prizes worth over $600 are subject to a 30% withholding tax on the gross value of the prize(s).
This was certainly the case for Amanda Ruller. After winning custom-made car speakers and a year-long satellite-radio subscription on Contestant’s Row, Ruller went up on stage, where she won a 2015 Hyundai Sonata by playing Hi Lo. Her luck ran out, however, when she advanced but failed to win the Showcase Showdown. But still, she walked away with a new car! Sort of.
U.S. Game Show Winnings Considered Income
Ruller was given the option of accepting the car or a cheque for its value. Had she chosen the car instead, she would have had to pay 30% of the gross value out-of-pocket. However, she didn’t, instead choosing a cheque.
Because Ruller is Canadian and her new Hyundai Sonata is valued at more than US$30,000, her cash prize was still subject to the IRS’ 30% withholding tax for gaming winnings.
After watching the IRS hold back 30% of her winnings, Ruller walked away with a cheque for US$25,000. Converting that into Canadian currency, she received a cheque for more than $30,000.
RMS Can Get Your 30% Game Show Winnings Withholding Tax Back
There is a way for Ruller or any other non-U.S. resident who won on a game show to get some or all of the 30% withholding tax back.
Established in 1998 by a Canadian Chartered Accountant, Refund Management Services (RMS) is a reputable casino and gaming tax recovery service, having helped thousands of people recover taxes on their U.S. gaming wins.
To find out how, talk to one of the game show winnings tax recovery experts at Refund Management Services. Call us toll-free from the United States or Canada at 1-888-272-5559 or you can e-mail RMS at [email protected].
Vanstone, R., “New wheels after Ruller’s game-show win,” Leader-Post web site, January 28, 2015; www.leaderpost.com/entertainment/wheels+after+Ruller+game+show/10766104/story.html.