A WOMAN has revealed that winning a huge cash prize on a TV show was the worst financial decision of her life.
India Gants, won the American Next Top model in 2017, when she was 19 years old.
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The now 28-year-old said that when she won the show she was given a cheque for £80,000.
“Boom baby, I’m rich,” she said while sharing her story in a TikTok video.
In the UK, all game show earnings are tax-free, meaning you can take the entire amount home with you.
In the US, however, profits are taxed as ordinary income,
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India said her “small, undeveloped mind” thought the tax had already been deducted when she received the check.
“News flash, that is not the case.”
The model then spent all the money on an apartment in New York, a car and fancy dinners with her family.
“Not the smartest thing I could have done,” she said.
India said that in hindsight, she should have kept 35 to 45 percent of the money so that she would have been prepared if she had to pay the money back through taxes.
Instead, she had to wait years to pay it back because she had spent all the money.
“If you watch a game show and you see they won $10,000 or a new car, take that “Take it with a grain of salt,” she said.
“Always prepare for your taxes, everyone.”
India (@indiagants) video, has likely silenced many, as the video has been viewed more than 241,000 times on the video platform.
Do you have to pay tax on game show winnings in the UK?
Unlike many other countries, such as the US, HMRC allows cash prizes from competitions and the National Lottery to be distributed tax-free.
However, for the money to be considered a ‘competition’, there must also be an element of skill, such as a quiz question or the ability to enter for free.
That’s why some contests ask very simple questions that even a five-year-old can answer, trying to get around the requirement and offer a free entry option.
TikTok users rushed to the video’s comments section to share their thoughts.
One person said: “I learned this from the Drag Race winners who did the same.
“They should definitely assign people a financial advisor!”
A second person said, “Thank you for sharing your experience. It can help young people learn how important their financial decisions are.”
A third person added: “And what about the family you took out to dinner?
“As a parent, I would have made sure my child was aware of taxes.”
A fourth person added: “I will never forget when Oprah gave me free cars and this happened to the whole audience!”
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