The Beast Games reality show, created by the world’s most famous youtuber, Mrbeast, has become a phenomenon of popularity in Prime Video. This is the most viewed series on the platform, totaling more than 50 million spectators in the first month after its debut on December 19. However, and despite the popularity of the program, what has caught the attention is the amount of taxes paid by the winner, Jeff Allen.
As revealed by, Beast Games was also the production that most subscribers attracted to Prime Video in 2024. The platform confirmed that the program has been especially popular outside the United States, with half the public coming from other countries, such as India, the United Kingdom and Mexico.
The presentation and co-creation of the format were in charge of Mrbeast, whose real name is Jimmy Donaldson. The program brought together 1,000 competitors who faced physical, mental and social challenges to compete for a $ 5 million monetary award. The competition took place over 10 episodes and ended on February 13.
The winner and the reason to participate
The big winner of the competition was Jeff Allen, known in the program as a player 831. In an unexpected moment, Mrbeast surprised by folding the $ 10 million prize through a face or crown challenge. Allen accepted the risk and, in the final challenge, correctly choosing a ten bags, guaranteed the total amount.
In an interview with the Dispatch, Allen revealed that his motivation to participate in the program was to help his seven -year -old son Lucas, who suffers from a rare disease called creatine carrier deficiency. This condition, which only affects about 150 people worldwide, causes difficulties in cognitive development and intellectual limitations.
The winner explained that although the $ 10 million is a significant amount, this amount represents only a small part of the funds needed to develop treatments. However, he believes his victory will pay more attention to his child’s illness and encouraged investigation in the area.
The recording of the program’s final program created by MRBEAST took place months before the broadcast, forcing Allen to maintain the secret until the last moment. During this period, he felt that a seed was planted and that the impact of its history would be reflected positively.
Despite the high prize, Allen revealed that she did not make big spending, choosing to settle some personal expenses. Its main focus is to contribute to the investigation and treatment of rare disease that affects Lucas and other children.
Throughout his journey in the competition, the participant highlighted the importance of giving visibility to his cause. He considered the experience valuable not only for money, but for the possibility of sensitizing the public.
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Taxes payable
Jeff Allen was born in Ohio, but currently lives in California. The full payment of the prize was made by bank transfer immediately after the transmission of your victory. However, a considerable part of the amount will be absorbed by federal and state taxes.
In the United States, awards earning television contests are treated as taxable income, such as salaries or business profits. There is no tax exemption for these amounts, and the highest federal tax rates are applied.
In addition to federal taxes, Allen is also subject to California’s state rate, one of the states with the highest fiscal load in the US. As a resident in this state, you will be required to deliver a significant percentage of the prize.
The maximum marginal rate of federal tax is 37% for high income. Since the awards of competitions are considered regular income, Allen will have to declare all of the amount in his income tax. Contrary to the block jackpots, the television contest prizes do not suffer automatic tax retention, being up to the winner to ensure the payment of tax obligations.
In the first echelons of income, reduced rates are applied between 10% and 22%. However, most Allen’s gains will be taxed at a maximum rate of 37%, resulting in a tax obligation of about $ 3.7 million. In addition to federal taxes, California charges 13.3% over income over one million dollars. Thus, Allen is expected to pay approximately $ 1.3 million to the state.
Adding federal and state taxes, the total amount to pay around $ 5 million. In practice, Allen will only have half the original award. This case shows how millionaire prizes can be significantly reduced by taxes, especially in high taxation states.
Even with these deductions, Allen is considered fortunate for the opportunity to sensitize the public for his child’s illness. “I feel I won because I had the opportunity to talk about Lucas’s condition … Everything that comes too much is a bonus,” he told The Columbus Dispatch.
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