Niagara County Pro-Am payouts

[Tourneygirl]

Prize Structure 

 

Amateur 

 

Each day prize Fri/Sat

1. $900

2. $675

3. $450

4. $225

 

$250.00 Big Fish Prize

 

Best  Two Day Total $500.00 Cup Prize

 

Pro Division

 

1. $11,000.00

2. $6,000

3. $5,000

4. $4,000

5. $3000

 

$250.00 Tackle Package Tank Award for worst score (with an actual score, not a zero).

 

$250.00 Tom and Ethel Letcher Memorial Big Fish Prize 

 

[John E Powell]

Can’t understand why pay $675 to AM second place? After taxes on $600+ prize your left with little more, or possibly less than, third place. A 2nd place winner would be better off if you just gave the extra money to first place so taxes could be avoided.


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[Tourneygirl]

It’s based on a percentage 

[John E Powell]

Yes, I understand that percentages are being used without consideration to tax implications, that’s my point -there’s something wrong when third place nets a similar or larger prize than second place.

It would be more equitable if prizes were adjusted to reflect the tax / no tax implications of winning a prize in the AM division.


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[Bozeman Bob]

In most other sports AMs do not get paid cash. When they do it immediately turns them into the Pro division. While I agree with the tax implications I think the AMs should get prizes only or gift certificates if they don't want to move up and get paid like the Pro's. That would take care of the tax implications and allow them to remain true Ams.

[Fishtails]

Great Job Penny, thanks for all your hard work and time that you put into this!!   Sorry I missed it this year.

 

[John E Powell]

In most other sports AMs do not get paid cash. When they do it immediately turns them into the Pro division. While I agree with the tax implications I think the AMs should get prizes only or gift certificates if they don't want to move up and get paid like the Pro's. That would take care of the tax implications and allow them to remain true Ams.

Or you could just have a $599 second place prize and add the (in this case) $76 to first place. Both First and second would get a bigger prize without making the tax man richer, simple...


________________________
Owner John's Custom Rods
Specializing in building Great Lakes trolling rods since 1979
First place winner of the 2016 World Rod Building Challenge

[rdebadts]

I think that’s nitpicking jon. The prize structure for the ams makes sense as is


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[rolmops]

Jon is right. the reward should go to the winners, not to taxes. Specially since all of this is money that taxes have been paid over already. As for amateurs not getting any cash prizes. Gas costs money and it is always very nice to be able to fish for free ,because the prize paid for the gas

[rdebadts]

It’s really too bad how things went today. Seems a delay would have made a ton more sense, even if we were already out. Beautiful all afternoon and gonna be nice tomorrow, sucks to have the results based on 2 hrs of fishing... when it didn’t have to be.


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[hawkeye625]

A well deserved thank you to penny.....she was put in a touchy situation and made a decision...as players..we have to respect that decision. What transpired at the pavilion after we all made a group decision was sad for the sport...and though I was no part of the mahem....i humbly apologize to penny for All of us. Keep on mind guys....everyones safety is her responsibility.

A special thanks to the blue eyes lady crew for towing me back to the dock. Thankfully...my boat died before we cleared the pierheads...had we been in the lake when my motor died....well...my guess is we would've made the news....something everyone should remember when questioning a safety related call to end a tournament. Just because you feel safe in your craft....things happen. Lucky for me it happened in the harbor! Thanks again penny....keep up the good work.

Jeff....aka playing hookey

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[John E Powell]

I think that’s nitpicking jon. The prize structure for the ams makes sense as is


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1st place $900 (about $621 after tax)
2nd place $675 (about $465 after taxes)
3rd place $450 tax free
4th place $225 tax free

Increase in pay from 4th to 3rd - $225
Increase in pay from 3rd to 2nd after taxes -$15
Increase in pay after taxes from 2nd to 1st -$156

There’s quite a disparity there... between 3rd and 2nd.

If 2nd place was lowered to $599 to avoid taxes then this would be the approximate net effect if the reduced amount was then added to first prize (same total prize fund redistributed to avoid taxes)

4th same at $225
3rd same at $450
2nd lowered $76, becomes $599
1st extra $76 added, becomes $976 (approx $674 after taxes)

Increase from 4th to 3rd same $225
New Increase from 3rd to 2nd now $149 instead of $15, second place takes home an additional $134 tax free.
New Increase from 2nd to 1st, 1st place takes home an additional $53 (after taxes).

I don’t think working within the tax structure to maximize payouts, at no additional cost to the tourney, is being picky. $187 is going to the tax man unnecessarily.




________________________
Owner John's Custom Rods
Specializing in building Great Lakes trolling rods since 1979
First place winner of the 2016 World Rod Building Challenge

[Reel Scream]

Well,  if everyone is in the 31% tax bracket that you illustrated, I don't think a few extra bucks in tax is really going to matter much to an angler in that tax bracket.  Being the effective tax rate on annual income of $120,000 minus deductions is about 10% give or take, plus a couple more percent for local tax. That would mean 2nd place would take home about $585, sounds OK to me. 

[Gator]

Okay, time to clear up a common misconception. Your tax rate is not the same as a tax bracket. I'm not being snarky; it seems like folks might benefit from this. Let's take an example - here's the chart for single, married and head of household:

 

10%	$0	$0	$0
12%	$9,525	$19,050	$13,600
22%	$38,700	$77,400	$51,800
24%	$82,500	$165,000	$82,500
32%	$157,500	$315,000	$157,500
35%	$200,000	$400,000	$200,000
37%	$500,000	$600,000	$500,000

.

After taking your "standard deduction" you pay increasingly greater percent tax, but only on earnings that exceed the minimum for that bracket! If you're in the 32% bracket, you only pay 32% on earnings over $157,500. But you pay 24% on the portion between $82,500 and $157,500, and so on down to zero. So your effective tax rate is always lower than your tax bracket. But additional income goes on top, so it's always taxed at the highest rate.

 

In practice, what this means is that any additional income you have from winnings is added to your base income and taxed at the highest bracket you're in, not at your effective tax rate, and it's individual-dependent. The more you make, the less of it you take home. A guy with no income would take the entire check to the bank. A guy with a big income would only take 63% of it.

 

Take home message: let the guy who makes the least claim the prize, then split it up accordingly.