As a Battle Royale Esports Apex Legends athlete, you may have the possibility to compete against other gamers in front of thousands, if not millions, of viewers. Along with the potential glitz and glamour of e-sports competition comes the Battle Royale Esports Apex Legends athlete tax planning, bookkeeping, and accounting.
Your Battle Royale Esports Apex Legends athlete earnings may include money that you earn as part of a team salary, from tournament winnings, and for sponsorships and endorsements. Depending on where you earn the money, what type of worker you are classified as, and the amount of money you earn, your Battle Royale Esports Apex Legends athlete CPA will need to take different approaches to your tax planning.
How May a Battle Royale Esports Apex Legends Athlete Accountant Handle Your Tournament Winnings?
Your Battle Royale Esports Apex Legends athlete tax planning may include tax obligations for each state and country you earn income from. Your accountant may use the location of your specific tournaments to dictate which laws apply to the money you earn in a tournament prize pool.
If the tournament is held in the United States, your bookkeeping should reflect US tax laws. The IRS requires people who earn more than $600 as an independent contractor to receive a 1099-Misc. This form will detail information about the money you received, who paid you, and when the money was received.
Even if you are not a United States resident, your Battle Royale Esports Apex Legends athlete CPA may still need to factor in your winnings based on United States federal income tax laws. Keeping track of Battle Royale Esports Apex Legends athlete bookkeeping for tournaments won in different states and countries can be time-consuming. Fortunately, working with a team of financial advisers who can help take the stress out of your bookkeeping, letting you focus on winning more tournaments.
Money Earned from Sponsorships and Endorsements
As a Battle Royale Esports Apex Legends athlete, you may receive money from personal sponsorships and endorsement arrangements. These could include things like yearly fees, prizes, and gifts.
Sponsorship money you receive as an e-sports athlete may be taxed similarly to other streams of income. Fringe benefits, such as free mileage because of a deal with an airline, promotional goods, or clothing, may be taxed on their fair market value. You may want to talk to a Battle Royale Esports Apex Legends athlete financial adviser before accepting “free” goods. The taxes you may have to pay on them may make receiving them counterproductive.
The Benefits of Financial Planning with an Expert
E-sports is a relatively new industry that is mostly comprised of younger individuals who may not have much familiarity with tax law. Unfortunately, US tax laws are unforgiving. If you fail to file or if you misfile your personal income taxes, you may be subject to an audit. Fusion CPA provdies Battle Royale Esports Apex Legends athlete CFO business advisory services. We have a team of financial advisers who understands tax planning and compliance for e-sports athletes. Our goal is to help athletes like you identify deductions unique to your industry and create tax strategies designed to minimize tax liabilities and maximize the percentage of income you keep. You may benefit from the experience of investment planning professionals with a keen insight into your industry and our experts are here to help. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
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