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By Ashley Parks
Associate Editor
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Jeffrey Randall Allen, the winner of MrBeast's "Beast Games," may be facing a hefty tax burden despite walking away with the $10 million grand prize. The reality TV contestant, also known as Player 831, recently revealed that the tax implications of his winnings could significantly reduce the amount he ultimately takes home.
Why It Matters
Winning a large sum of money in a game show or lottery does not mean the recipient gets to keep it all. In the U.S., prize money is considered taxable income according to the IRS, and winners are often responsible for paying both federal and state taxes.
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The tax burden can significantly reduce the net payout of any prize, which is a crucial consideration for contestants on high-stakes competition shows like "Beast Games."
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What To Know
Allen, who competed in the Amazon Prime Video show against 999 other contestants, stated on "The Iced Coffee Hour" podcast that he is still determining exactly how much he will owe in taxes but estimates that if he does not allocate any funds to charitable donations or investments, his tax bill could be around $5 million.
"If you didn't do anything with the dollars...I would guess that my taxes will be over $5 million," Allen told "The Iced Coffee Hour" hosts Jack and Graham.
Prize winnings are categorized as ordinary income by the IRS, which means they are subject to federal income tax at standard rates. For large prizes, winners can be taxed at the highest marginal rate, which currently stands at 37 percent for individuals earning over a certain threshold. This does not include additional state and local taxes that may apply depending on the winner's residency.
Unlike traditional employment income, where taxes are automatically withheld by an employer, game show winners are responsible for setting aside and paying their own taxes. Some contests and lotteries withhold a portion of winnings for tax purposes before disbursing funds, but in this case, Allen received the entire $10 million upfront. This puts the burden of tax planning entirely on him.
The total amount owed depends not only on federal and state rates but also on how the winnings are managed. Strategic financial decisions, such as charitable donations or investments, may help reduce taxable income. Certain types of contributions, such as those to donor-advised funds or charitable remainder trusts, can provide tax benefits while also supporting philanthropic causes.
Some states do not levy an income tax, which can result in significant savings for winners who reside in or relocate to those areas. However, for those in high-tax states like California or New York, state tax rates can range from 5 percent to over 13 percent, further reducing the final amount retained by the winner.
What People Are Saying
An article from Taxfoundation.org on state individual income tax rates and brackets in 2025 states: "Top marginal rates span from 2.5 percent in Arizona and North Dakota to 13.3 percent in California. (California also imposes a 1.1 percent payroll tax on wage income, bringing the all-in top rate to 14.4 percent as of 2024.)"
Jeffrey Randall Allen, Beast Games winner, said on "The Iced Coffee Hour" podcast: "...I'm working on it. I think it all depends on what I do with the money this year. The crazy thing about MrBeast, he doesn't withhold taxes when he kind of gives the distribution. So I literally got $10 million wired to me. So, it's up to me to do state taxes."
What's Next
For future contestants on high-stakes game shows, understanding tax implications and seeking financial advice before spending their winnings could be key to maximizing their take-home amount.
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