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Checks and taxes??
Posted: Sat Dec 29, 2012 1:46 pm
by boli34
Have all of the checks been sent out and is anyone aware of how much you get taxed? I won $1,750 and I'm wondering what the bring home is going to be.
Re: Checks and taxes??
Posted: Sat Dec 29, 2012 3:24 pm
by Shrink Attack
The check will be for the full amount. It's up to you to pay the applicable tax on you tax return. You'll receive a W-9 from STATS for that amount, so the IRS is aware of that income.
The IRS refuses to make a clarifying statement about how to treat this income. Some classify it as miscellaneous income, others as gambling income. Either way, the entry fee is deductible from the winnings.
Re: Checks and taxes??
Posted: Sat Dec 29, 2012 7:28 pm
by boli34
So since it was split over 2 teams because I won $1250 on one team and $500 on another would $700 be deducted because that's steep and damn near 50% of the winnings.
Re: Checks and taxes??
Posted: Sat Dec 29, 2012 9:23 pm
by BillyWaz
boli34 wrote:So since it was split over 2 teams because I won $1250 on one team and $500 on another would $700 be deducted because that's steep and damn near 50% of the winnings.
No Boli....you will receive a check for $1750 that will be reported to the IRS (like Shrink said).
It is up to you to report it and pay taxes. Good thing is you can deduct ALL entry fees up to $1750 (even the ones you didn't win in this year).
