Receiving Winnings from Game

[nitsuapark]

So pretty much I play competitively for Heroes of Newerth. I'm the team captain of my team so our winnings get sent to my paypal. I'm aware that we do get taxed on it later on but I'm not exactly sure how it works. Would this lead to me being the one getting taxed fully on our prizepools? 

[PayPal_Adrian]

Hi prizepools,

Welcome to the Community!

While we can't speak specifically to your tax obligatons (ou may want to consult a tax expert in your area), please keep in mind that PayPal only files a form if you receive 200 transactions for goods and services and they total over 20,000 USD.

However, since it is your PayPal account that would be receiving money when that threshold is crossed, the I-9 filed with the IRS would be associated with you.  The party sending you these payments may also file a separate I-9 on their side as well.

For more complete information, please see this page.

Thanks!

Adrian