Amy Schneider’s “Jeopardy!” wins will include a hefty tax invoice

Picture courtesy of Jeopardy Productions, Inc. exhibits sport present champion Amy Schneider on the set of “Jeopardy!” Schneider is the primary trans individual to qualify for the present’s Match of Champions.

Hazard Productions | AP

Amy Schneider was on a “Jeopardy!” roll.

The Oakland, California-based software program engineering government just lately surpassed $1.1 million in earnings on the TV sport present, changing into the primary lady and fourth individual to interrupt the $1 million mark has damaged by means of. On Friday, she beat James Holzhauer’s document for third straight video games received with 33 wins.

Every time Schneider’s successful streak involves an finish, she’ll possible stroll away a rich lady.

She additionally has to pay a big portion of that earnings to Uncle Sam.

“She’s going to have a reasonably large tax invoice as a result of the earnings she’s making on the present is common earnings,” mentioned Megan Gorman, an lawyer and managing associate at Checkers Monetary Administration in San Francisco. “She’ll be paying among the highest rates of interest in the US for that earnings.”

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How a lot she’s going to owe in taxes

Profitable greater than $1 million will put Schneider within the prime tax bracket within the nation. On condition that Schneider is probably going a single filer, which means she faces a 37% federal tax price on at the least among the earnings.

In California, the place Schneider resides and the place the present is filmed, she is topic to one of many highest state tax charges within the nation.

Once more, good points of greater than $1 million will put her within the state’s prime tax bracket, which implies she owes an extra 13.3% — 12.3% is the highest tax price, and earnings in extra of $1 million {Dollars} are topic to an extra 1% tax on psychological well being companies, Gorman mentioned.

After Friday’s sport, Schneider had received a complete of $1,111,800. With that quantity, she would possible owe greater than $375,000 in federal taxes and nearly $140,000 to California, in accordance with present tax tables.

That is nearly half of their revenue, which is taxed instantly. Even so, she would possible take house greater than $500,000.

“From a tax standpoint, it is a fairly arduous achieve,” Gorman mentioned.

Nonetheless, it is excellent news for Schneider that she lives in California, Gorman defined.

Which means she does not need to pay bi-state earnings taxes like different winners have. On this case, they get a credit score for California earnings taxes paid, making submitting extra sophisticated that Schneider can keep away from.