‘America’s Got Talent’ Winners Don’t Actually Receive $1 Million Prize

America's Got Talent winners

America's Got Talent/YouTube

Jessica Sanchez, a former American Idol runner-up, recently took home the America’s Got Talent Season 20 crown. But winning the reality talent competition comes with a major caveat.

Jessica Sanchez is a vocalist who first appeared on AGT 20 years ago, when she was only 10. In the years following her national television debut, Sanchez continued to pursue her dream. She competed on the 11th season of American Idol in 2011. She ultimately placed 2nd behind the winner, Phillip Phillips.

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Following Jessica’s success on Idol, she was signed to a record deal, released her first single, and performed at a number of high-profile events and venues, including for President Barack Obama at the White House.

Despite all of her success, Jessica Sanchez had one task left to accomplish—she wanted to earn herself a long-awaited reality singing competition title.

Jessica Sanchez returned to the America’s Got Talent stage in 2025, pregnant with her first child.

Jessica took the stage and performed a jaw-dropping rendition of Benson Boone’s “Beautiful Things.” The performance earned her a Golden Buzzer from judge Sofia Vergara, sending the singer directly to the live shows.

Sanchez was an early fan favorite, and it carried her all the way to the finale and earned her the Season 20 title.

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When Jessica Sanchez won the 2025 season of America’s Got Talent, she was promised $1 million.

But the cash prize isn’t quite what it seems. A disclaimer shown in fine print at the end of the finale reveals that the million-dollar prize is actually an annuity. That means that over the course of 40 years, the winner can receive an annual payout of $25,000, before taxes. Or, they can opt for a lump sum totaling roughly $300,000 instead (also before taxes).

Forbes was the first media outlet to report on the AGT payout process, but the reason for the talent show’s prize disbursement remains somewhat of a mystery. It could be due to the number of young contestants on the show whose guardians may think it better to receive the money a little bit at a time. Regardless, neither payout option totals a full $1 million as advertised by the contest, according to Forbes.

Many of the acts that have appeared on America’s Got Talent have gone on to find success after the show, proof that the publicity received from the show has the potential to give careers a huge boost.

Some of America’s Got Talent’s previous contestants are reportedly worth much more than their $1 million winnings.

According to Goldderby, ventriloquist and impressionist Terry Fator signed a $100 million 5-year contract with The Mirage in Las Vegas following his season 2 win. When his deal was about to expire, his contract was renewed for an undisclosed amount.

Season 12 winner, singing ventriloquist Darci Lynne Farmer, went on tour following her win. The tour was a massive success with 52 dates that included nine holiday-themed shows. She went on tour a second time in 2019 and now has a reported net worth of $4 million.

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But, not all acts that found success after their America’s Got Talent appearance won the trophy. Violinist Lindsey Stirling and vocal group The Texas Tenors are just two acts who didn’t take home the title but found massive success away from the AGT stage.

Stirling was a season 5 quarterfinalist. She launched her YouTube channel to new heights by amassing more than 14 million subscribers and 3.5 billion total views. The musician has a reported net worth of $6 million.

The Texas tenors placed fourth on season 4 and are considered one of the most successful acts to come out of the America’s Got Talent competition. The group earned five Emmy nominations and three wins after starring in their own television special following their AGT run. They have since starred in a second television special and released three albums, garnering a reported net worth of $13 million.