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

Amy Schneider's 'Jeopardy!' winnings will come with a hefty tax bill

This picture supplied by Jeopardy Productions, Inc. reveals sport present champion Amy Schneider on the set of “Jeopardy!” Schneider is the primary trans individual 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 lately surpassed $1.1 million in winnings on the TV sport present, turning into the primary girl and fourth individual 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 underneath her belt.

Every time Schneider’s successful streak is up, she’ll probably 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 earnings she’s earned on the present is odd earnings,” mentioned Megan Gorman, an legal professional and managing associate at Chequers Monetary Administration in San Francisco. “She’ll be paying a number of the high charges in the US on this earnings.”

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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. Provided that Schneider is probably going a single filer, meaning she’ll have a 37% federal tax price.  

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, which means she’ll owe a further 13.3% — 12.3% is the highest tax price, and earnings of greater than $1 million is topic to a further 1% psychological well being companies tax, Gorman mentioned.

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 straight away. Nonetheless, she’d take residence $552,564.60.

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

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

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

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