MrBeast’s $10 Million “Beast Games” Prize Comes with a Hefty Tax Bill, Winner to Only Receive $5.03
MrBeast’s “Beast Games” competition has finally come to an end, with Jeff Allen emerging as the winner of the coveted $10 million prize. However, Allen’s windfall comes with a significant catch: after federal and state taxes, he’ll take home approximately $5.03 million.
The Taxman Cometh
As with any major prize win, taxes play a significant role in reducing the overall amount. In this case, Allen’s prize money is subject to both federal and state taxes. Here’s the breakdown:
- Federal Tax: 37% of the prize money, which is around $3.7 million
- California State Tax: 13.3% of the prize money, which is around $1.33 million
- Total Tax Obligation: approximately $4.97 million, which is 50.3% of the prize money
- Net “Take-Home” after Taxes: approximately $5.03 million
California’s High Tax Rates
Allen’s tax situation is more complex due to his residency in California, which has some of the highest tax rates in the country. California’s top marginal tax rate is 13.3%, which is one of the highest in the nation. This means that Allen’s prize money is subject to a significant state tax liability.
Charitable Donations Could Help
While Allen’s tax bill is substantial, he may be able to reduce his taxable income through charitable donations. By donating a portion of his prize money to qualified charitable organizations, Allen may be able to minimize his tax liability and keep more of his winnings.
MrBeast’s “Beast Games” competition has provided an exciting and entertaining experience for participants and viewers alike. However, the tax implications of winning such a large prize are significant. As Allen navigates the complexities of his tax situation, he’ll likely be grateful for the opportunity to take home a life-changing amount of money – even if it’s not the full $10 million.
