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Fortnite: The World Cup winner will pay crazy taxes on prize money

Fortnite World Cup, Fortnite, Fortnite World Cup winner, Fortnite on prize money, gaming,
Fortnite World Cup

Fortnite: The World Cup winner will pay crazy taxes on prize money

Just a few days ago, the 16-year-old Fortnite won the Fortnite World Cup, winning $3 million for winning the competition. However, it may end up taking only half that number to the house with him.

At the end of last week, Fortnite Kyle Giersdorf or "Budha", as is known among Fortnite players, won the Fortnite World Cup and officially won a $3 million prize. 

While Giersdorf still held a large part of the money, US taxes ended up halving this amount, according to Ryan Friend of Rush B Media.

In a tweet sent by Ryan, he stated that New York State held the Fortnite World Cup will receive approximately 2.75 million dollars for the event among all the collected revenue. 

Ryan adds that Giersdorf, in particular, will give New York state $265,000 as taxes, while the federal government will collect about $1.2 million in taxes. 

Ryan adds that this would bring the Giersdorf prize money to about $1.5 million; half of what was originally won at the Fortnite World Cup

Ryan gave the context of how he got to the amount that Gersdorf would take home. Twitter reported that the highest rate of tax in the United States is 39.4% while the New York tax rate for the prizes is 8.82%.

Although it is good that New York State had the opportunity to raise $2.75 million from the entire event, among all forms of income, the amount of money imposed on him by Giersdorf may be somewhat appalling for many. 

It is widely known that state governments often take part in the rewards they have received from sweepstakes and similar contests, but for the Giersdorf profits, which are taxed collectively in half, maybe an insult to him and his family.

This example is a reversal of recent news that Rockstar Games has not paid any taxes in the UK over the past decade. 

Politically, many are divided on the issue of taxation for various reasons, but it can be universally agreed that $1.5 million is a lot of money being imposed on a $3 million prize. 

In the end, Giersdorf was still taking a lot of money to the house to compete of this kind, but half was a considerable amount.

Fortnite is now available for early access to iOS, Android, PC, PS4, Switch, and Xbox One.

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