Please explain why the **** would some tournament pay into someone else's 401K
Sarcasm my friend.
Please explain why the **** would some tournament pay into someone else's 401K
He's joking....
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Do these pro players pay anything into Social Security or even pay any taxes on the money they win ?
any monies pooled from players in the form of entry fees imo should never be taxed, never ever period
added monies is different
They'll definitely need it being they have no retirement fund no income coming in at an elderly age plus no medical unless they have a plan.
Not exactly. The organizer is usually not required to withhold taxes on players who have a tax ID such as an SSN. The organizer is required to withhold money from foreign players (and I suppose anyone who cannot present a valid tax ID number -- TIN).Here in the U.S., tournament organizers are required by law to withhold a set percentage from each player's prize money payout and forward it to the IRS.. The player then has to file an income tax return for that year to get the money back if they qualify for a tax refund.
This is usually done in the big events. The U.S. Open 9 Ball championship (under Pat Fleming) did this. Also, the BCA did this as well when they held their pro events in Las Vegas.
Players can show proper documentation to the organizer to be exempt from having taxes withheld. For example, some top players have incorporated themselves.
Not exactly. The organizer is usually not required to withhold taxes on players who have a tax ID such as an SSN. The organizer is required to withhold money from foreign players (and I suppose anyone who cannot present a valid tax ID number -- TIN).
The exact percentage that is withheld depends on which country the player comes from and the specific tax treaty that the US has with that country. For some countries there is no withholding on up to several thousand dollars of income. In general the organizer is not required to wade through the tax treaties -- every country seems to be different -- and can simply withhold 30% from every non-resident alien (NRA). There is no minimum reporting amount for an NRA like the $600 minimum for a US citizen.
Such withheld funds must be deposited immediately at a certain class of bank. In addition the organizer must file forms with the IRS.
In the case of a US citizen, the organizer may be required to withhold money if he has previously been notified by the IRS that a particular individual has a tax problem. As an organizer, I have received such a notice. IIRC, the notice could potentially require withholding the entire prize.
The organizer is liable for taxes and penalties that turn out to be due if he fails to file the proper paperwork and of course withhold as required.
A little piece of paper saying that you were a very nice person to give the IRS it's 30% share. And if you give them a lot more paper in return, you may get some of the money back. Oh, and you get a warm, fuzzy feeling.That is very useable information, but tell me: what does one get from the money withheld?
oke::rotflmao1::speechless:
Not exactly. The organizer is usually not required to withhold taxes on players who have a tax ID such as an SSN. The organizer is required to withhold money from foreign players (and I suppose anyone who cannot present a valid tax ID number -- TIN).
The exact percentage that is withheld depends on which country the player comes from and the specific tax treaty that the US has with that country. For some countries there is no withholding on up to several thousand dollars of income. In general the organizer is not required to wade through the tax treaties -- every country seems to be different -- and can simply withhold 30% from every non-resident alien (NRA). There is no minimum reporting amount for an NRA like the $600 minimum for a US citizen.
Such withheld funds must be deposited immediately at a certain class of bank. In addition the organizer must file forms with the IRS.
In the case of a US citizen, the organizer may be required to withhold money if he has previously been notified by the IRS that a particular individual has a tax problem. As an organizer, I have received such a notice. IIRC, the notice could potentially require withholding the entire prize.
The organizer is liable for taxes and penalties that turn out to be due if he fails to file the proper paperwork and of course withhold as required.
You may want to do a 5-year depreciation schedule. The IRS says in a FAQ:Hmmm.. maybe I can deduct that Tascarella as a 'business' expense.. that'll nicely offset my winnings
You may want to do a 5-year depreciation schedule. The IRS says in a FAQ:
[1] Can I deduct the cost of the equipment that I buy to use in my business?
Equipment is considered a capital asset. You can deduct the cost of a capital asset, but not all at once. The general rule is that you depreciate the asset by deducting a portion of the cost on your tax return over several years.
If in fact you are going to claim pool expenses as a business deduction, you better show that your pool business turns a profit for something like three of five years or the IRS will conclude that it is just an expensive hobby. Doing a five-year schedule on a cue allows you to sop up profits over that period. If you sell the cue, the amount received over the depreciated value has to be declared as a profit. (Or at least that's the way I read the tax code. I am not a CPA, although I used to lose regularly to one.)
You may want to do a 5-year depreciation schedule. The IRS says in a FAQ:
[1] Can I deduct the cost of the equipment that I buy to use in my business?
Equipment is considered a capital asset. You can deduct the cost of a capital asset, but not all at once. The general rule is that you depreciate the asset by deducting a portion of the cost on your tax return over several years.
If in fact you are going to claim pool expenses as a business deduction, you better show that your pool business turns a profit for something like three of five years or the IRS will conclude that it is just an expensive hobby. Doing a five-year schedule on a cue allows you to sop up profits over that period. If you sell the cue, the amount received over the depreciated value has to be declared as a profit. (Or at least that's the way I read the tax code. I am not a CPA, although I used to lose regularly to one.)