What are the tax implications of prize winnings?
Winnings of $600 or more in a calendar year must be reported to the IRS by Phenoms FF, regardless of the entry fees you’ve paid. Your winnings will be reported via a 1099-MISC. You must supply your SSN or TIN in order to receive your winnings if you have $600 or more for the calender year. Consult a tax account for information regarding the possibility of writing off entry fees against your winnings. While US Residents will not have any money withheld from their winnings, Non-US Residents are subject to 30% withholding. Non-US Residents must obtain a US Taxpayer Identification Number (TIN) via form W-7. You must then file a US tax return, upon which you may be able to recover some or all of the withholdings. Consult a tax accountant in your country for more information.
