Originally Posted by rkim291968
$300000 after tax will be about $160000.
Manager/coach/caddie's cut will significantly reduce it further.
Housing, food, car payments can cut it down even more.
Subtract traveling, and other cost associated with entering tournaments.
---- for foreign players, add the following potential extra ----
Family member supporting the player in US.
And you can see how $300000 can disappear in a hurry. So, if you don't have a major sponsor and is not a top 50 players, breaking even can be a challenge.
I love hypotheticals:
$300,000 in winnings
Caddie (5%-7%, assuming some top tens, but no wins): $18,000
Coach: Let's say $10,000 a year
Housing: Lots, if not most places, players stay in private homes for free. But let's say hotel @ $1000 per week: $20,000
Food: Generally provided at tournament site, but dinners/drinks out @$50 per night x 20 events x 5 nights: $5000
Cars: Aren't they provided by each tournament?
Airfare: 20 events x $1000 (very high assumption, but maybe they want to play in Asian events): $20,000
English instructor? Seriously? OK, Rosetta Stone: $500
Clothing, equipment, etc. provided by others.
If Mom and Dad want to come along, they pay their own way. After all, they could afford to cart their little princess around to every Junior tournament for years.
So, assuming the highest expenses, I get $73,500. All tax deductible, I believe.
Federal taxes, then, are on an adjusted gross income of $300,000 - $73,500 = $226,500. Assuming she is single, tax is $58,000. There will be state taxes as well, depending on where she made her money. Let's add another $10,000 in taxes.
Net for the year: $226,500 - $68,000 = $158,500.
I could be off on some of my assumptions, but I think they would balance out. At least to the extent that I would guess that anyone making $300,000 on the LPGA is doing alright financially.
Edit: It took so long to do my figuring, I didn't realize how off-topic this was.