Just got my check for coming in 2nd place in a $350 Online League. I've never cashed before, so I was always under the impression that the amount that you get is the published number PLUS your original entry fee. Now I'm surprised to see that the $650 second place prize means you're actually only winning $300. Seriously, am I the only ding-dong who misunderstood this?
Can I assume that the amount being reported to the IRS is $300 and not $650, since that's the amount I actually won? And since that figure is less than the IRS reporting threshold, does this mean this doesn't get reported at all (I need to know because I have a silent partner and need to know how much to pay him since I'd have to pay the taxes)?
I feel like an idiot (which isn't that much different than how I feel every day...).
Am I That Dumb?
Am I That Dumb?
"There is but one game and that game is baseball." – John McGraw
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Glenneration X
- Posts: 3730
- Joined: Sat Mar 21, 2009 6:00 pm
- Location: Long Island, NY
Am I That Dumb?
Originally posted by BEF:
Just got my check for coming in 2nd place in a $350 Online League. I've never cashed before, so I was always under the impression that the amount that you get is the published number PLUS your original entry fee. Now I'm surprised to see that the $650 second place prize means you're actually only winning $300. Seriously, am I the only ding-dong who misunderstood this?
Can I assume that the amount being reported to the IRS is $300 and not $650, since that's the amount I actually won? And since that figure is less than the IRS reporting threshold, does this mean this doesn't get reported at all (I need to know because I have a silent partner and need to know how much to pay him since I'd have to pay the taxes)?
I feel like an idiot (which isn't that much different than how I feel every day...). No BEF, you're not an idiot. Still, you did have it wrong.
The $650 is the total prize and is the value reported to the IRS on your 1099. However, when you file you can deduct the cost of the entry fee (plus any ancillary expenses) to reduce the taxable income to the true winnings of $300 or less.
Hope this helps.
Glenn
Just got my check for coming in 2nd place in a $350 Online League. I've never cashed before, so I was always under the impression that the amount that you get is the published number PLUS your original entry fee. Now I'm surprised to see that the $650 second place prize means you're actually only winning $300. Seriously, am I the only ding-dong who misunderstood this?
Can I assume that the amount being reported to the IRS is $300 and not $650, since that's the amount I actually won? And since that figure is less than the IRS reporting threshold, does this mean this doesn't get reported at all (I need to know because I have a silent partner and need to know how much to pay him since I'd have to pay the taxes)?
I feel like an idiot (which isn't that much different than how I feel every day...). No BEF, you're not an idiot. Still, you did have it wrong.
The $650 is the total prize and is the value reported to the IRS on your 1099. However, when you file you can deduct the cost of the entry fee (plus any ancillary expenses) to reduce the taxable income to the true winnings of $300 or less.
Hope this helps.
Glenn
Am I That Dumb?
Glenn, thanks very much, that's a perfect explanation. So I guess that makes the $125 satellite leagues even more attractive, since you're getting about 10:1 on your money, while the Main Event is only offering 3:1. Looks like it's much smarter to enter four or five $125 leagues than one higher entry league...
"There is but one game and that game is baseball." – John McGraw
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Glenneration X
- Posts: 3730
- Joined: Sat Mar 21, 2009 6:00 pm
- Location: Long Island, NY
Am I That Dumb?
Originally posted by BEF:
Glenn, thanks very much, that's a perfect explanation. So I guess that makes the $125 satellite leagues even more attractive, since you're getting about 10:1 on your money, while the Main Event is only offering 3:1. Looks like it's much smarter to enter four or five $125 leagues than one higher entry league... Depends on your goal. If your goal is to win the league and get the highest return of investment for a league win, that's definately the way to go. However, if your goal is to go for an Overall championship and the big payoff, then.....
I personally like a mix of both Overall leagues and satellites. Good luck this year in whatever direction you choose for yourself.
Glenn
Glenn, thanks very much, that's a perfect explanation. So I guess that makes the $125 satellite leagues even more attractive, since you're getting about 10:1 on your money, while the Main Event is only offering 3:1. Looks like it's much smarter to enter four or five $125 leagues than one higher entry league... Depends on your goal. If your goal is to win the league and get the highest return of investment for a league win, that's definately the way to go. However, if your goal is to go for an Overall championship and the big payoff, then.....
I personally like a mix of both Overall leagues and satellites. Good luck this year in whatever direction you choose for yourself.
Glenn