The Tax Benefit Of Winning The U.S. Open At Oakmont Country Club [Forbes]
H&R Block, Inc. (HRB)
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Source: Forbes
The U.S. Open continues to represent one of golf's biggest prizes. While any golfer would give whatever it takes to take home this year's trophy (first place prize again expected to be $4.3 million), there is an extra layer of incentive this year that makes it even more beneficial relative to future years: taxes. Like Dechambeau's win last year in North Carolina, this year's winner can also expect to face relatively low state income taxes levied on their prize in comparison to upcoming years. In this article, I discuss the tax implications of winning at Oakmont and why it differs so much for the next three U.S. Open golf tournaments. Taxation Of Professional Athletes Like other professions, when athletes earn money, they are subject to income taxes under Section 61 of the Internal Revenue Code. At the federal level, this rate maxes out at 37% for income over $626,350 ($751,600), meaning that most major professional athletes pay 37 cents for every incremental dollar earned. This ta
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