Do Professional Golfers on Tour Pay Taxes?
Professional golfers on the PGA and LPGA Tours are subject to various forms of taxation, including federal income tax, state income tax, and social security tax. The amount of tax they pay depends on their income, expenses, and residency.
Federal Income Tax
Professional golfers are taxed on their worldwide income. The federal income tax rates range from 10% to 37%. Golfers can also deduct business expenses from their income, such as travel, equipment, and coaching.
State Income Tax
Most states also impose an income tax. The state income tax rates vary from 0% to 13.3%. Professional golfers who reside in a state with a high income tax rate will pay more in taxes than golfers who reside in a state with a low income tax rate.
Social Security Tax
Professional golfers are also subject to social security tax. The social security tax rate is 12.4%, which is divided equally between the employee and the employer. Golfers who earn more than $147,000 per year will pay an additional 2.35% in Medicare tax.
Residency
Professional golfers who reside outside the United States may be eligible for a foreign tax credit. The foreign tax credit allows golfers to deduct the amount of income tax they have already paid in their home country from their U.S. tax liability.
Related Questions
- Are professional golfers responsible for paying estimated taxes? Yes, professional golfers who expect to owe more than $1,000 in taxes must make estimated tax payments throughout the year.
- Can professional golfers deduct business expenses from their income? Yes, professional golfers can deduct business expenses, such as travel, equipment, and coaching, from their income.
- What is the top federal income tax rate for professional golfers? 37%.
- Do professional golfers pay state income tax? Yes, professional golfers who reside in a state with a state income tax must pay state income tax.
- Are professional golfers eligible for a foreign tax credit? Yes, professional golfers who reside outside the United States may be eligible for a foreign tax credit.
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