Many of the prizes on Wheel of Fortune seem almost too good to be true. Contestants regularly win enormous sums of money, expensive cars, and trips around the world. It turns out that there is a reason the prizes might feel unrealistic: winners end up paying taxes on everything they take home from their TV experience.
When you win big on the show, the IRS treats the price tag of your winnings just like income: You're taxed in a big way. CinemaBlend explored the case of Wheel of Fortune winner Matt McMahan, who walked away with over $16,000 in cash and two trips worth more than $15,000. The show does allow winners to find less expensive versions of their trips to avoid a higher tax hit. McMahan took this option, ending up with trips for $10,000.
Once the taxes were paid out, McMahan estimates he walked away from Wheel of Fortune with about $6,000 out of over $30,000 in prizes. It really makes you think. When speaking to MarketWatch, he did say that the trips were worth it, saying that even with all the strings attached, "experiences are worth more than money right now."
