MLG does not take taxes out of your prize checks. It is on you to pay your own taxes. What MLG does that others don't though, because they are a legit company, is report what was paid to whom. That means the IRS knows you won money. The % you owe though is gonna be the same at MLG or at GAMME, the difference is you probably could get away not paying taxes at GAMME (even though you are legally responsible to and I would recommended you do, especially if you are a top player who makes 10K+ a year in Smash because that makes you a target, Ken use to pay taxes on ALL his winnings from ANY tournament).
I don't know Canada's tax code, but from Wikipedia
Again, this stuff applies to EVERY tournament. Not just MLG. If you make a decent amount off the game you really should consider paying taxes, even if all the money you earned was cash from local tournaments. As for the percent it likely varies based on how much you made and what bracket you are in. It would probably count at a minimin as self imployment, which means at <$8,000 (or $4,000 I forget) then you need to pay 15% cause thats for SS/Medicare (this is US). If you make more then that in a year you probably get bumped up into the 30-40% threshold. This is if you count this money as income from work. If the government views it as "winnings" like the lottery or gambling in Vegas, then you could be paying upwards of 40-50%. You can factor in your expenses though which should lower the amount you owe.
Just to make sure this is perfectly clear: this applies to any tournament you have ever been to. If you have been making 10k + a year in Smash and have not paid taxes I can guarantee that if the IRS found out you would get audited. If its uder 10k you should check the tax code, I've heard different points at which you need to report ranging from as little as $800, $4,000, and $8,000. This could also be effected from your expenses (say you make $6,000 but spent $5,000 in traveling/lodging, I would say its iffy if you need to pay taxes but you should look into it).
Most of you guys are NOT unemployed and are simply listed as dependents for your parents, which means you have to pay taxes on small sums (unlike if you are independent and unemployed, in which case you don't pay unless you earn more then the poverty line or so).
I'm not an expert on this stuff, you guys should definitely look into this stuff on your own, especially if you are a higher earner in the Smash community (there are at least 30 of you out there making more then 10k).
I don't know Canada's tax code, but from Wikipedia
I would assume Ally does in fact need to pay taxes on his winnings in America (this goes for every tournament, not just MLG). He is basically defrauding the Canadian government if he does not report.
Again, this stuff applies to EVERY tournament. Not just MLG. If you make a decent amount off the game you really should consider paying taxes, even if all the money you earned was cash from local tournaments. As for the percent it likely varies based on how much you made and what bracket you are in. It would probably count at a minimin as self imployment, which means at <$8,000 (or $4,000 I forget) then you need to pay 15% cause thats for SS/Medicare (this is US). If you make more then that in a year you probably get bumped up into the 30-40% threshold. This is if you count this money as income from work. If the government views it as "winnings" like the lottery or gambling in Vegas, then you could be paying upwards of 40-50%. You can factor in your expenses though which should lower the amount you owe.
Just to make sure this is perfectly clear: this applies to any tournament you have ever been to. If you have been making 10k + a year in Smash and have not paid taxes I can guarantee that if the IRS found out you would get audited. If its uder 10k you should check the tax code, I've heard different points at which you need to report ranging from as little as $800, $4,000, and $8,000. This could also be effected from your expenses (say you make $6,000 but spent $5,000 in traveling/lodging, I would say its iffy if you need to pay taxes but you should look into it).
Most of you guys are NOT unemployed and are simply listed as dependents for your parents, which means you have to pay taxes on small sums (unlike if you are independent and unemployed, in which case you don't pay unless you earn more then the poverty line or so).
I'm not an expert on this stuff, you guys should definitely look into this stuff on your own, especially if you are a higher earner in the Smash community (there are at least 30 of you out there making more then 10k).
![[FBC] ESAM](/data/avatars/l/92/92614.jpg?1365783210){kind=avatar}
i don't know what to feel right now.
