Scheffler Receives the Winner’s Share of the Masters Prize, and the IRS Receives a Million Dollars.

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Scottie Scheffler of the United States, the world’s No. 1 men’s golfer, won the 2022 Masters on Sunday, defeating Rory McIlroy of Northern Ireland by three strokes after shooting a 10-under par 278. Scheffler is also a “winner” because the Masters purse and first-place prize have been increased for 2022. Both increased by 30%, from $11.5 million to $15 million and from $2.07 million to $2.7 million.

 

IRS

 

The iconic green jack jacket now features pockets stuffed with green. However, the 25-year-old University of Texas graduate, who reportedly also resides in the income-tax-free state, will face some new income obligations as a result of his success.

Scheffler will pay the highest federal income tax rate, 37%, as well as the highest Georgia income tax rate, 5.75 percent. In other words, Scheffler’s prize will be taxed at a 42.75 percent rate. He will still “take home” or earn a seven-figure sum, but it will be reduced to $1,546,000, as we project. This amount reflects a payment of approximately $999,000 to the Internal Revenue Service and a payment of approximately $155,000 to the Georgia Department of Revenue.

 

Not bad at all. However, not $2.7 million.

Naturally, this calculation takes into account only what is publicly available. Scheffler and his accountant may be able to boost the net by increasing deductions. Caddies typically earn $2,000 per week and 10% of the winnings, whereas renting a house in Augusta for the week, as the majority of players do, can easily exceed $10,000. Other expenses that are deductible include tips, air travel, hotel accommodations, meals, swing coach fees, and agent fees.

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Scheffler, who signed a multiyear deal with TaylorMade Golf earlier this month, also stands to benefit from an enhanced profile and increased public recognition in terms of endorsements.

However, as with all earnings and awards in sports, “gross” and “net” are two entirely different concepts.

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