'Price Is Right' Winner Had to Pay Tax to Collect Prize

Andrea Schwartz says a law required her to pay state tax before she could claim her 33,000 prize.
2:32 | 08/20/13

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Transcript for 'Price Is Right' Winner Had to Pay Tax to Collect Prize
And we have a story on one of the most popular game shows on tv, "the price is right." After all of the excitement of winning, it turns out that sometimes, there are a lot of headaches and strings attached. And the strings attached go right to the irs. Abc's brandi hitt has the story. Come on down. You're the next contestant on "the price is right." Reporter: It's the moment game show dreams are made of. Getting called on down on "the price is right." Imagine andrea's excitement when she made it into the final round, the show case showdown. And then, won. But schwartz says that excitement gave way to frustration, when she realized that in addition to local and federal tax, california law required her to pay state income tax on her $33,000 prize, before she could even claim her winnings. I remember having an image of driving off in my convertible with a stack of cash. And waving off to bob barker. And that never happened. Reporter: The price is right" had no comment overnight. But experts say the irs considers prizes and giveaways taxable income for all tv contestants and guests. They make claim surprise when they win because they never expected to win. But the fact is, it is taxable. And you're usually told in advance that it's taxable. Reporter: One famous example, audience members at this oprah winfrey show received brand-new pontiacs, only to learn they'd have to pay $7,000 each in taxes. They were reportedly given the option of forfeit the prize. A policy shared by "price is right" and throughout the industry. As for schwartz, she chose to sell most of the prizes for less than they were worth because they didn't fit in her apartment. But she still walked away with enough money to start her own food truck and a priceless lesson learned. If you're broke, don't go to a game show expecting to win. You need a little bit of money to get your wins. Reporter: For "good morning america," brandi hitt, abc news, los angeles. That's a pretty great lesson right there. Yep. I think so. Maybe the game show should pony up and pay the irs. Yeah. You go, vargas. Just saying. If you win, you should win. You should win. I agree. Well, I think -- kumbaya. We all agree. We all agree. Coming up, everybody, lady

This transcript has been automatically generated and may not be 100% accurate.

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