WorldWinner - 20 dollar winnings, they're charing for 120?

[lilmario]

Ok I'm British and have received the US 1042-S tax form.

I have a check still waiting to be cashed from World Winner, $10.11

And I withdrew online $10, which came to around £7 something..

Total Deposits: $10.00
Total Signups: $-90.25**
Total Winnings: $116.36
Total Credit Card Charges: $10.00
Total Check Fees: $0.00
Total Withdrawals: $-20.44
-to Credit Card: $-10.00
-to Check: $-10.11
-to Paypal: $-0.00

**Please note that entry fees made with game credits will not be reflected within Total Signups on the "Yearly Summary" page. However, your "Account Statement" will include entry fees made using game credits. Therefore, your Account Statement may differ slightly from your Yearly Summary. For income tax purposes, you should always use the figures from your Yearly Summary. Game credits are issued as entry fee refunds for game errors or may be awarded as part of a WorldWinner promotion or gift credit. Game credits can only be used for entry fees and cannot be withdrawn.



So will I be charged based on the $20.11 I withdrew? I don't get where this 90/100 dollar difference has come from, I've 34 cents left.

I have this 1042-S form, how do I pay? by check? I can't afford to get professional advice on U.S. taxes but would like to know how I find out how much I need to pay and how I do it..

I really would appreciate any help!

Kind regards

[Grengoddess]

You only need report anything you win on your taxes if you exceed 600 dollars proft ^^

[Flignats]

Are you in the US? If not, why bother?

[msufan]

seriously, for that amount, forget it

[afort56]

Ok, here goes. As a few others have said, your really don't have anything to worry about. To begin, you don't owe any taxes to the US since you won less than $600. Even if you had won more that $600, WW would have started to withhold 28% of your winnings at the standard US withholding rate. This is standard practice for foreign players. From what I know, you really never owe the US anything more than WW withholds. What you have received in the mail is more for your information. Additionally, I don't know the UK tax laws as they pertain to foreign income or winnings, but this is really the only reason this form would apply to you.

Now to explain why WW says $110 in winnings but you only have $20 in your pocket. This is a result of how the US tax code is written. Here's an example:

You have a $10 account balance(AB).

Play 3-player $2.00 entry fee game. Prize is $4.50 and you win. Your WW winnings are now $4.50 and AB=$12.50.

Repeat the same thing, your winnings are now $9.00 and AB=$15.00

This time, you lose, your winnings are still $9.00, as losses are not directly deductible from winnings per the tax code and AB=$12.50.

Repeat another loss, winnings $9.00, AB=$10.00.

Now, WW will deduct entry fees of games won from your winning balance, so your net WW winnings would be $9.00 - (2 x $2.00) = $5.00

So, for tax purposes, you've won $5, but your account balance is $10, the same as what you started with.

Do this for awhile longer and it's easy to see how you only have $20 dollars in your pocket but WW says you won $110.