How Taxes Impact the Squid Game: The Challenge Prize Money

The Gist:

• Squid Game: The Challenge sees 456 players compete to win a cash prize of $4.56 million.
• The reality competition series was filmed in the UK, where prize money is exempt from taxes.
• If the winner hails from another country, they may be subject to taxes imposed by their home nation.

In just a few short days, Squid Game: The Challenge will crown its first-ever winner! This champion will not only strut away with some serious bragging rights but also pocket a whopping $4.56 million — the largest single cash prize in reality television and game show history.

Now, let’s talk about money! After taxes, what’s the scoop on how much cash the Squid Game: The Challenge winner will be stuffing into their pockets? Stick around because we have all the answers you’re looking for.

As it turns out, the Land of the Free overlords cast their wide net over global income, including those massive game show winnings. So, even though the U.K. is giving them a tax pass, an American victor will have to cough up a decent amount of their earnings.

According to Turbo Tax, snagging $1,000 in a drawing means you’re a cash prize winner. Now, cash prizes aren’t just confined to lucky draws — you could win cash prizes in a sweepstakes, a game show, or on a reality TV competition like Squid Game: The Challenge. So, whether you’re making it rain or flaunting a lone dollar bill, you must include all prize earnings as income on your tax return.

The amount of tax the Squid Game: The Challenge winner pays depends on where they live and how much cash they take home. Turbo Tax noted that opting for a lump sum payout, especially for a substantial jackpot (like $4.56 million), could place them in the highest tax bracket, resulting in a minimum tax obligation of 37 percent owed to the IRS.

Watch Squid Game: The Challenge on Netflix.