Fortnite World Cup winner might lose half of the prize on taxes
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A few days ago, the 16-year-old player Kyle “Bugha” Giersdorf won the Fortnite World Cup – along with a prize pool of $3 million. However, as Ryan Friend of Rush B Media suggests, the young winner might lose about half of the amount due to taxes.
Over on Twitter, Friend stated that the New York State would receive about $2.75 million for hosting the tournament. He also added that Giersdorf himself would have to pay the state the total amount of $265,000 while the federal government would take its cut in taxes from the young winner – around $1.2 million. Eventually, the amount of Kyle’s gaining will reduce by $1.5 million, which will leave him with roughly half of what he initially won.
Friend offered a brief look at his calculations. According to him, the tax rate in New York State is 8.2% while the government takes a cut of 39.4%. One of the Twitter users decided to make an estimated conclusion based on that:
After that “legitimate robbery,” the size of the Fortnite World Cup prize pool doesn’t seem that much impressive, does it?