Phil Mickelson Lost 61% of his Scottish Winnings to Tax
|November 4, 2013||Posted by Staff under Taxes|
This 2013 excerpt USA TODAY, July 23, is by Nate Scott.
Not so fast with that cash, Lefty.
Phil Mickelson will sacrifice 61% of his earnings for winning both the 2013 Open Championship and the Scottish Open, all of which will go in taxes to the British and U.S. governments and to the State of California.
Great Britain still collects taxes in Scotland, where the Open Championship was held this year. (Scotland will start collecting its own taxes in 2016.)
Forty five percent of Mickelson’s winnings will go to Great Britain, with 13% going to California and the remaining going to the United States government.
Doubling the pain? Mickelson also won the Scottish Open the week before the Open Championship, which will be taxed at the same rate. For winning both tournaments, Mickelson earned £1,445,000, or about $2,167,500. After taxes, he’ll take home $842,700, and that’s before Mickelson pays his caddie, pays for his hotel and expenses, pays his agent, etc, with a bit over $1.3 million going to taxes.
Mickelson was ranked as Forbes’ #7 highest-paid athlete. This is the guy who said he might move away from California because of the state taxes there. No tears shall be shed for him. But man. Sixty-one percent is a lot of percent.