"Consumerist.com gives the example of a 'Price is Right' winner (name withheld) whose haul included a new truck, a washer and dryer, an Apple computer, a poker table and a trip to Washington, D.C... 'I won $57,000-worth of items. I had to pay around $17,000 or $20,000 in taxes.'
Some winners, he said, decline to take their prizes because they don’t want to pay the taxes."
"Another catch: You’re paying taxes on the item’s full retail value – in
the case of a car, say, on the manufacturer’s suggested retail price,
rather than on the discounted price a buyer on the open market might
pay. Win a really big prize, and the income might be enough to lift you
into a higher tax bracket, further increasing the cost of your good
You can read more from ABC News HERE.