Amy Schneider’s ‘Jeopardy!’ winnings will come with a hefty tax bill
Jeopardy Productions, Inc. has provided the image. It shows Amy Schneider, game show champion, at work on “Jeopardy!” Schneider became the first trans person in the Tournament of Champions.
Amy Schneider is on “Jeopardy!” roll.
Oakland, California’s software engineering manager and Oakland resident, she recently exceeded $1.1million in wins on the television game show. This makes her the fourth woman and first person to surpass the $1 million mark. With 33 victories, she broke James Holzhauer’s record for winning the most consecutive games.
Schneider is a winner every time. She’ll be a successful woman.
The earnings she makes will also be transferred to Uncle Sam.
Megan Gorman of Chequers Financial Management San Francisco, said that “She’ll have a fairly hefty tax bill” because she has earned income on television. This income will see her pay the most high rates of tax in the United States.
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What amount she will owe taxes
Schneider’s win of more than $1 million will put her in the best tax bracket. Schneider, a likely single filer, will be subject to a 37% federal income tax rate.
California, where Schneider resides and where the show is shot, has one of the highest rates for state income taxes in the country.
Again, winnings of more than $1 million will put her in the top tax bracket in the state, meaning she’ll owe an additional 13.3% — 12.3% is the top tax rate, and income of more than $1 million is subject to an additional 1% mental health services tax, Gorman said.
Schneider won $1,111,000. After Friday’s match, she had $1,111,800. She would pay $147,869.40 in California taxes, and $411,366 federal taxes.
So, 50.3% went straight to taxes. She would still take home $552 564.60.
Gorman explained that it was a difficult victory from a tax point of view.
Gorman said that Schneider is a Californian, which Gorman explained to Schneider.
This means that she will not have to pay income taxes in either California or New York, like other winners. Schneider is allowed to claim a credit in this case for California’s income tax paid. This adds another layer of complexity that Schneider cannot avoid.