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Mickelson’s PGA Championship Yields Smaller Green After Tax Bill

Phil Mickelson shocked the golf world on Sunday, successful the 2021 PGA Championship at Kiawah Island Golf Resort’s Ocean Course in South Carolina. Mickelson, who final received a serious championship in 2013, completed two strokes forward of runners-up Brooks Koepka and Louis Oosthuizen.

It was the sixth profession main victory for Mickelson. He received his first in 2004, when he got here out on prime on the Masters Tournament, with a birdie on the ultimate gap.

At age 50, Mickelson turns into the oldest golfer to win a serious. Julius Boros beforehand held that distinction by successful the PGA Championship as a 48-year-old in 1968. While each sport is completely different, Mickelson is 15 years older than Michael Jordan was when His Airness received his closing NBA title. Mickelson can also be seven years older than Tom Brady, who received his seventh Super Bowl in February. Mickelson is so superior within the years that he’s eligible for full membership with the American Association of Retired Persons. He’s additionally a decade older than is required to sue underneath the federal Age Discrimination in Employment Act.

Mickelson’s prize for successful the 2021 Championship is $2.16 million from the event’s $12 million purse. That’s earlier than taxes.

Mickelson will likely be obligated to pay a federal earnings tax fee of 37% on his winnings. He’ll even be topic to a federal payroll tax of 1.45% after relevant deductions. Further, Mickelson is on the hook to pay South Carolina’s state earnings tax. That fee is 7% on winnings in extra of $15,400. This means Mickelson will internet roughly $1.16 million after federal and South Carolina taxes.

But Mickelson would possibly face taxes from a further state: California. Media experiences indicate that whereas he’s within the strategy of constructing a house on Florida’s Jupiter Island (the place there isn’t any state earnings tax), he has reportedly lived in Rancho Santa Fe, California, for a while. Assuming Mickelson is a California resident, he would lose about $140,000 extra in taxes and internet roughly $1.02 million.

Keep in thoughts, that’s an estimate, one which doesn’t consider potential outlays for brokers’ charges, caddie suggestions and journey deductions.

But it’s affordable to estimate that Mickelson will lose greater than 45% of his prize, and probably greater than 50%.

Mickelson, who has earned $94 million in profession earnings (not together with many thousands and thousands extra in endorsement offers with Rolex, Callaway Golf and different prime manufacturers), is not any stranger to the subject of taxes. In 2013, he publicly complained concerning the mixture of federal and state taxes as a California resident. California, after all, has the very best state earnings tax fee within the nation. “I happen to be in that zone,” Mickelson observed, “that has been targeted both federally and by the state, and it doesn’t work for me right now.”

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