do pro tournaments outside the USA deduct taxes from winnings?

C

CanadianGuy

Well-known member
I know most of the big USA tourneys deduct federal tax before issuing cheques.

How about out side USA?

over here, Canada makes the distinction between winnings and earnings,

you can keep all your winnings to a certain point, they make the rationale vague though, essentially if the government determines that you have what they state as .............'an expectation of winning'............meaning you win regularly then they ding you, otherwise you're home free, in theory


in practice any large deposit to your bank as an independent contractor will likely bring an audit and everything that entails,
at that point, you almost need to shell out for a CPA or even tax attorney as our revenue service is brutal on the little guys,
 
CanadianGuy said:
I know most of the big USA tourneys deduct federal tax before issuing cheques.

How about out side USA?

over here, Canada makes the distinction between winnings and earnings,

you can keep all your winnings to a certain point, they make the rationale vague though, essentially if the government determines that you have what they state as .............'an expectation of winning'............meaning you win regularly then they ding you, otherwise you're home free, in theory


in practice any large deposit to your bank as an independent contractor will likely bring an audit and everything that entails,
at that point, you almost need to shell out for a CPA or even tax attorney as our revenue service is brutal on the little guys,
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Pool players are like golfers, independent contractors. They pay taxes regardless of where they make it, domestic or outside US. That's why so many golfers live in 'no state tax' states like Tx, Fl, Nevada. They all have accountants/specialists that manage/invest the $$.
 
garczar said:
Pool players are like golfers, independent contractors. They pay taxes regardless of where they make it, domestic or outside US. That's why so many golfers live in 'no state tax' states like Tx, Fl, Nevada. They all have accountants/specialists that manage/invest the $$.
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understood the question was which tourneys make those on site deductions?
 
Years ago we were crossing into the US from Canada to go to a tournament. They pulled us in for secondary inspection and asked where we were going. I said we were going to a qualifying tournament trying to get into the US Open. He asked if we were gonna make any money. I said no were looking to just qualify.
 
George the Greek said:
Years ago we were crossing into the US from Canada to go to a tournament. They pulled us in for secondary inspection and asked where we were going. I said we were going to a qualifying tournament trying to get into the US Open. He asked if we were gonna make any money. I said no were looking to just qualify.
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no offense but what does that have to do with taxes? border stations don't have any tax-related powers afaik. Now, if you were bringing back a case of bourbon you may have issues. ;)
 
garczar said:
Pool players are like golfers, independent contractors. They pay taxes regardless of where they make it, domestic or outside US. That's why so many golfers live in 'no state tax' states like Tx, Fl, Nevada. They all have accountants/specialists that manage/invest the $$.
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If you win a tournament in Ohio, which has a State tax, don't you pay Ohio State tax no matter where you live? And for that matter, the local tax too? I believe you do.

Say you are from Florida, play and win a tournament in Columbus Ohio. I believe you will pay Ohio state AND Columbus tax.

Not positive, but I'm sure Ohio would say... If you made money in Ohio, you pay tax to Ohio.
 
buckshotshoey said:
If you win a tournament in Ohio, which has a State tax, don't you pay Ohio State tax no matter where you live? And for that matter, the local tax too? I believe you do.

Say you are from Florida, play and win a tournament in Columbus Ohio. I believe you will pay Ohio state AND Columbus tax.

Not positive, but I'm sure Ohio would say... If you made money in Ohio, you pay tax to Ohio.
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yes. its often referred to as the 'jock tax'. i don't know if its done every state or not. https://huddleup.substack.com/p/why-athletes-pay-taxes-in-every-state
 
garczar said:
no offense but what does that have to do with taxes? border stations don't have any tax-related powers afaik. Now, if you were bringing back a case of bourbon you may have issues. ;)
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No sure about if anything to do with taxes he only asked if we're going to win any money. What that was all about I haven't a clue.
 
CanadianGuy said:
understood the question was which tourneys make those on site deductions?
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The US law requires event promoters to file a tax form for everyone who wins more than a certain amount of money (was $600, may be less now).

In the case of players who do not have a US tax ID number (SSN or ITIN, non-citizens can get a ITIN) the promoter typically withholds 30%. That withholding is required to be deposited within a few days to a qualified US bank that accepts such money for the IRS. That's typical. Certain countries have special tax treaties with the US that have different rules. For an event I ran, I discovered that Turks are exempt up to about $9,000 in income, or some such. The promoter must also provide forms to both the IRS and the player. Maybe the player can get some kind of credit in his home country -- I think the US gives some credit for foreign taxes.

US states can be strange. I had to pay California taxes on some money I earned in France, unless I wanted to give up California residency.

Not all promoters deal with the tax forms for either the tournament or the calcutta. I think the IRS holds the promoters liable for the taxes on those unreported earnings.
 
If it's anything like casino or lottery winnings , Canadians can apply to get those tax withholdings back. Other countries may as well. In Canada you generally only pay tax on the interest you make on the winnings.
 
that application process is difficult as you need to prove losses to get back some of the taxes

paid services exist here to help you with that, its rarely worth it unless you get into high five figure winnings
 
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