By Sean Clark – Tax Senior, and Jeff McCurry, CPA – Tax Manager

Winning money on live television is the kind of story you get to tell for the rest of your life—and the “College GameDay Field Goal Kick” contest has produced some great moments of drama, celebration, and even heartbreak. But if you’re one of the lucky (and skilled!) fans who walk away with cash, the celebration should come with a dose of practicality: yes, your winnings are almost always taxable.

Below is what you need to know about the taxability of contest prizes—and some smart strategies for turning short-term winnings into long-term financial security.

Are Contest Winnings Taxable?

Short answer: yes—contest winnings are generally considered taxable income by the IRS.

Any money you receive from a contest, promotion, sweepstakes, or game show is treated as ordinary income, whether it comes from ESPN, a local business, or a national sponsor. That means:

• The fair market value of the prize must be reported on your tax return.
• You’ll owe federal income tax, and potentially state income tax, depending on where you live.
• The sponsor may issue you a Form 1099-MISC showing the amount awarded.

Even if you don’t receive a physical tax form, the IRS still expects you to report the income.

What About Withholding?

Typically, promotional contest winnings are not taxed at the time you receive them. That means you get the full amount now, but you’ll still owe taxes when you file your return.

If you win $30,000, you receive the full $30,000, but you will be taxed, according to your tax bracket, on this amount when your tax return is filed.

That can be a shock if you’ve spent the entire prize before tax season—so planning ahead is crucial.

5 Smart Ways to Manage the Tax Impact

If you win contest money, the smartest first step is to set aside a portion immediately for taxes or consult a tax advisor about making estimated tax payments. Many financial planners recommend stashing 25–30% in a separate high-yield savings account until tax time.

Beyond that, here are a few strategies, in no particular order, for making the most of your winnings while also reducing your overall financial burden.

1. Consider Contributing to a Retirement Account

Putting part of your winnings toward retirement not only boosts your long-term security—it may also come with tax advantages.

Traditional IRA or 401(k)

A contribution to a Traditional IRA or employer-sponsored 401(k) may be tax-deductible, which can offset some of the taxes owed on your winnings. If you qualify, this can lower your taxable income for the year.

Roth IRA

Contributing to a Roth IRA won’t get you a tax deduction today, but it allows your winnings to grow tax-free, and qualified withdrawals in retirement are also tax-free.

If you’re young and the field goal money is just a small part of your lifetime earnings, a Roth IRA can turn a one-time contest prize into decades of tax-free growth.

Keep in mind, contest winnings are not considered earned income, so you would need earned income from other sources to be eligible for any type of retirement contribution.

 

2. Start or Add to an Emergency Fund

Many Americans struggle to build a proper emergency fund—but contest winnings offer an instant opportunity to get ahead.

A good rule of thumb is to keep three to six months of living expenses in an accessible savings account.

This isn’t the flashiest strategy, but it is one of the most financially powerful. Even $5,000–$10,000 put aside today can prevent credit card debt, reduce financial stress, and provide stability for years.

 

3. Open a 529 College Savings Plan

If you have children—or plan to—using your Field Goal Kick winnings to fund a 529 college savings plan is a smart and tax-efficient move.

Benefits include:

• Tax-free growth
• Tax-free withdrawals for qualified educational expenses
• Potential state tax deductions or credits, depending on your state
• Flexibility to use the funds at vocational schools, many international universities, and even K-12 tuition (in some cases)

You can even name yourself as the beneficiary if you want to pursue future education.

Turning contest winnings into future education funding is one of the most responsible (and impactful) uses of a windfall.

 

4. Invest in a Diversified Portfolio

If your retirement accounts are already on track and your emergency fund is healthy, investing your winnings in a regular taxable brokerage account can be a great way to grow wealth.

With a balanced strategy—such as low-cost index funds—you can:

• Build long-term financial security.
• Take advantage of compound returns.
• Maintain flexibility to withdraw funds when needed.

Just remember that, unlike retirement accounts, taxable accounts don’t come with upfront tax advantages. However, long-term capital gains rates are often lower than ordinary income tax rates, which is helpful if you hold investments for more than a year.

 

5. Pay Down High-Interest Debt

Using money to eliminate high-interest debt (especially credit cards) can provide a guaranteed financial return.

If you’re paying 20% interest on a credit card balance and you wipe it out with your contest winnings, you’ve effectively earned a risk-free 20% return.

This can be one of the smartest financial moves a winner can make.

Final Thoughts

Winning the “College GameDay Field Goal Kick” is an unforgettable experience—but it’s also an opportunity to make meaningful financial progress.

Just remember:

• Prize money is taxable income.
• Set aside a portion right away for taxes.
• Use the rest to build long-term stability—whether through retirement savings, investing, college planning, or paying down debt.

A single kick on national television might last only a few seconds, but with the right planning, the financial benefits can last a lifetime.