Are Tournament Payouts Taxable?
- Thread starter Jen_Cen
- Start date
Generally, no.
I would think top-level pro events (WPC/ USOpen ?DCC) would, if only to protect themselves and their investments.
I would think top-level pro events (WPC/ USOpen ?DCC) would, if only to protect themselves and their investments.
The tournament director or 'payer' is required to report winnings (income) of $600 or more to the IRS (form 1098). I don't believe most do that, but they are required to do so. Also, if you should play in a couple of mini tournaments or a couple of different divisions and win $600 or more collectively, that qualifies as reportable income as well. That's a tough one to keep track of but technically, you're suppose to do that.
L8R...Ken
L8R...Ken
Checkout this tournament information might answer your question
http://www.usba.net/2008Tour-ChrisBilliards-Open-12-5.asp
http://www.usba.net/default.asp
If you are planning to enter the tournament you need only read the sections below that apply to you:
• For U.S. residents – only sections 1 and 5 apply;
• Most foreign residents need only read sections 2 and 5;
• However, if you live outside the United States but you have received or can obtain an Individual Tax Identification Number (ITIN) from the Internal Revenue Service (IRS) you may be able to avoid withholding taxes. To learn more, read sections 3 and 4 (as well as 2 and 5).
Forms referred to below may be viewed/downloaded at http://www.irs.gov/formspubs
Section 1 – United States Residents
You can avoid withholding taxes on your prize money by filling out Form W-9. This tells us your name, address and Social Security number. (Form W-9 will be made available at the Tournament.) After the Tournament, Carom Caf? will report your winnings to the IRS, to Illinois State and to you, using Form 1099-MISC. (If you do not fill out Form W-9, we will be required to withhold 30% of your prize money!)
Section 5 – Two Additional Notes About Taxes
If you do not win a prize we will not need to collect any personal information from you. For U.S. residents, this means you will not have to fill out a W-9. For foreign residents, it means that neither will you have to fill out an 8233, nor will you have to provide us with the information we would need to fill out a 1042-S.
http://www.usba.net/2008Tour-ChrisBilliards-Open-12-5.asp
http://www.usba.net/default.asp
If you are planning to enter the tournament you need only read the sections below that apply to you:
• For U.S. residents – only sections 1 and 5 apply;
• Most foreign residents need only read sections 2 and 5;
• However, if you live outside the United States but you have received or can obtain an Individual Tax Identification Number (ITIN) from the Internal Revenue Service (IRS) you may be able to avoid withholding taxes. To learn more, read sections 3 and 4 (as well as 2 and 5).
Forms referred to below may be viewed/downloaded at http://www.irs.gov/formspubs
Section 1 – United States Residents
You can avoid withholding taxes on your prize money by filling out Form W-9. This tells us your name, address and Social Security number. (Form W-9 will be made available at the Tournament.) After the Tournament, Carom Caf? will report your winnings to the IRS, to Illinois State and to you, using Form 1099-MISC. (If you do not fill out Form W-9, we will be required to withhold 30% of your prize money!)
Section 5 – Two Additional Notes About Taxes
If you do not win a prize we will not need to collect any personal information from you. For U.S. residents, this means you will not have to fill out a W-9. For foreign residents, it means that neither will you have to fill out an 8233, nor will you have to provide us with the information we would need to fill out a 1042-S.
Jen_Cen said:
I always did. Not like I was going to win any huge amounts but I would also write off my travel expenses, entry fees and so on. Some promoters would look at me funny when I wanted receipts for things. I also sold cues, did repair work and had it all as a business. I even had a group health insurance policy tied into the pool business. I paid into SS as well. I think a lot of pool players are missing the boat not being legitimate as well as many cue makers. Most cue makers don't even have a license of any kind. Pool players should at the very least they should look into it.
Technically, you are supposed to report any winnings or income. If the tournament has you sign a release or you receive a 1099 then the IRS will probably know about any winnings. Keeping track and treating as a business has its advantages but also there could be self employment tax, etc.
Tax Deduction, almost the same as for entertainer, which can include clothing deduction.
