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“Jeopardy!”  Amy Schneider’s winnings will come with a hefty tax bill

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“Jeopardy!” Amy Schneider’s winnings will come with a hefty tax bill

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This image provided by Jeopardy Productions, Inc. shows game show champion Amy Schneider on the set of “Jeopardy!” Schneider is the first trans person to qualify for the show’s Tournament of Champions.

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Amy Schneider participated in a “Jeopardy!” roller.

The Oakland, Calif.-based software engineering manager recently surpassed $1.1 million in game show earnings, becoming the first woman and fourth person to break the $1 million mark. On Friday, she broke James Holzhauer’s record for the third most consecutive games won, with 33 wins to her name.

Whenever Schneider’s winning streak is up, she’ll likely leave a wealthy woman.

She will also have to pay a large part of this income to Uncle Sam.

“She’s going to have a pretty hefty tax bill because the income she earns on the show is ordinary income,” said Megan Gorman, an attorney and managing partner at Checkers Financial Management in San Francisco. “She will pay some of the highest rates in the United States on that income.”

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How much will she owe in taxes

Earning more than $1 million will put Schneider in the highest tax bracket in the country. Since Schneider is likely a single filer, this means she will have a federal tax rate of 37%.

In California, where Schneider lives and where the series is filmed, she is subject to one of the highest tax rates in the country.

Again, winnings over $1 million will put her in the highest tax bracket in the state, which means she will owe an additional 13.3% – 12.3% is the rate. highest tax, and income over $1 million is subject to an additional 1% mental health services tax, Gorman said.

After Friday’s game, Schneider had won a total of $1,111,800. With this amount, she would pay $411,366 in federal taxes and $147,869.40 to California.

It is 50.3% of his earnings which are immediately paid in taxes. Still, she would take home $552,564.60.

“It’s a pretty tough win from a fiscal standpoint,” Gorman said.

It’s good news for Schneider that she resides in California, Gorman explained.

That means she won’t have to pay income taxes in two states, like other winners have had to. In this case, they receive a credit for the California income taxes paid, which adds a layer of complication to the filing that Schneider can avoid.

“Jeopardy!” Amy Schneider’s winnings will come with a hefty tax bill

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