Extra Jeopardy Notes: Although King James got $2,000 for his 2nd-place finish, those consolation monetary prizes are NOT included in a Jeopardy champion's official final total. So, if James was just a few dollars short of breaking the total-money record still held by Ken Jennings, that $2,000 he got for losing would not have officially bested Ken's record amount. Plus, even if you were to unofficially count the consolation prize as part of the total "winnings," you would then also have to take into account Ken's 2nd-place consolation prize of $2,000 as well (which is not part of his official record winnings).
In 2014, after Ken Jennings finally lost, it was estimated that he would have to pay a little bit more than $1 million bucks in taxes. Which means that King James will most likely have to pay about the same thing, unless perhaps his tax bracket is much different (he's a professional gambler, so not sure how rich/poor he is on paper).
In 2016, all three contestants flunked out in a regular game (I assume that means that nobody made it to Final Jeopardy), and the two leading contestants each received $2,000 as a consolation prize, while the third place contestant received $1,000, and then three new players were brought in for the next episode.
In 2017, Manny Abell won a game with $1. Abell had $1,000 going into Final Jeopardy!, while the other two players each had $12,300 (12 times more than Abell's winnings). Unfortunately for them, they both wagered everything and lost, while Abell wagered $999. He gets to keep the dollar, but the losers got $2,000 and $1,000. However, since the winner gets to play again, he/she can still get that $1,000 last place consolation prize, bringing their 2-day total to at least $1,001. I assume that you don't have to get to the Final Jeopardy stage to get the $1,000 last place prize.
Warning: I'm not playing with a full deck.