Does the irs collect at big tournaments in the U.S.
taxing players
- Thread starter solid C player
- Start date
A thread about this was available just after the US Open. The IRS collects from winning. Some events take out the funds other pay and you file.
I only have won small amounts $700 at open and $300 at turning stone. Not sure at what amount the tax starts.
Couple threads down, pool players not paid! That would make paying taxes hard... wonder what then?
I only have won small amounts $700 at open and $300 at turning stone. Not sure at what amount the tax starts.
Couple threads down, pool players not paid! That would make paying taxes hard... wonder what then?
If you earn more than $600 (or $700), some big tournaments do file your winnings with the IRS. Then you get a 1099 in January. You would have to ask the tours/tournaments about it for sure; each one is different. Usually you can tell if that is going to happen if before you get your check and/or play on a tour/in a tournament, you are asked to provide your SSN.
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I don't think the IRS tries to actually collect any tax at tournaments - not enough money involved (unfortunately) to warrant that effort.
I think anybody who wins a prize of $600 or more is technically supposed to receive and file a form 1099-MISC with their tax return and whoever pays the prize is supposed to give the winner the form 1099 to file and also file a form 1096 to report it separately to the IRS.
I doubt that most tournaments know or follow this law to the letter. If they don't give you a form 1099 to file with your tax return, it's likely that they don't report your winnings to the IRS by filing their own form 1096.
pj
chgo
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You would need a P and L statement
Just because you win 600 at a tournament, does not mean you won 600 dollars, entry fee, quarters, food, gas, room.
But if you win 600 at the horse track they take out taxes and give you a 1099 on the spot. That is 600 on a 2 dollar ticket. If you bet 50 and got back 600 you do not get the 1099.
I tend to keep my receipts for all tournaments, flyer for the entry, credit card for gas, hotel, food. So if the MAN comes after you, at least you have some paperwork.
Just because you win 600 at a tournament, does not mean you won 600 dollars, entry fee, quarters, food, gas, room.
But if you win 600 at the horse track they take out taxes and give you a 1099 on the spot. That is 600 on a 2 dollar ticket. If you bet 50 and got back 600 you do not get the 1099.
I tend to keep my receipts for all tournaments, flyer for the entry, credit card for gas, hotel, food. So if the MAN comes after you, at least you have some paperwork.