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Amy Schneider’s more than $1.1 million in ‘Jeopardy!’ winnings will come with a hefty tax bill

This picture offered by Jeopardy Productions, Inc. shows sport clearly show winner Amy Schneider on the set of “Jeopardy!” Schneider is the very first trans individual to qualify for the show’s Event of Champions.

Jeopardy Productions | AP

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

The Oakland, California-dependent software program engineering supervisor just lately surpassed $1.1 million in winnings on the Television set match show, getting the initially woman and fourth individual to break the $1 million mark. On Friday, she beat James Holzhauer’s report for the 3rd-most consecutive video games won, with 33 wins less than her belt.

Every time Schneider’s winning streak is up, she’ll most likely stroll absent a wealthy female.

She’ll also have to fork out a significant chunk of people earnings to Uncle Sam.

“She’s likely to have a quite significant tax bill for the reason that the earnings she’s gained on the clearly show is common earnings,” explained Megan Gorman, an lawyer and controlling companion at Chequers Money Management in San Francisco. “She’ll be paying out some of the top costs in the United States on this income.”

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How substantially she’ll owe in taxes

Profitable extra than $1 million will put Schneider in the best tax bracket in the place. Offered that Schneider is likely a single filer, that suggests she’ll have a 37% federal tax level for at least a portion of the earnings.  

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In California, the place Schneider life and the exhibit is filmed, she’s subject to a single of the maximum condition tax rates in the country.

All over again, winnings of extra than $1 million will set her in the leading tax bracket in the point out, meaning she’ll owe an additional 13.3% — 12.3% is the top rated tax fee, and profits of additional than $1 million is subject matter to an more 1% psychological health expert services tax, Gorman claimed.

Immediately after Friday’s activity, Schneider had won a full of $1,111,800. With that sum, she’d probably owe far more than $375,000 to federal taxes and virtually $140,000 to California, according to current tax tables.

That is nearly 50 % of her winnings long gone to taxes right away. Even now, she’d probable acquire house a lot more than $500,000.

“It is a fairly arduous get from a tax perspective,” Gorman said.

It’s good news for Schneider that she’s a California resident, although, Gorman described.

That signifies she would not have to pay out taxes on the earnings in two states, as other winners have experienced to. In that case, they are presented a credit back again for the profits taxes compensated in California, which adds a layer of complication to submitting that Schneider can stay clear of.

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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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