US Citizens and Resident Aliens

Prize winnings awarded to US citizens and resident aliens will be reported on IRS Form 1099-MISC. Winners are responsible for any applicable federal and state income taxes and should consult with a tax advisor regarding their individual obligations. No automatic withholding will be applied to U.S. citizens or resident aliens, unless required by law due to backup withholding.

Non-Resident Alien (International) Prize Winners

In compliance with US tax law, a federal withholding tax of 30% will be applied to all prize amounts awarded to non-resident aliens (i.e. individuals who are not US citizens or resident aliens for tax purposes). This withholding is mandatory and will be deducted from the gross prize amount prior to disbursement. The withheld amount will be remitted directly to the IRS on behalf of the prize winner.

International winners will receive IRS Form 1042-S at the end of the calendar year for tax reporting purposes. Prize recipients may be eligible to claim a refund or reduced withholding under a tax treaty between the US and their country of residence; however, such eligibility must be documented in advance by submitting IRS Form W-8BEN and any other required documentation prior to the issuance of prize funds.

Important Note:

All winners will be required to complete the appropriate tax forms (eg. Form W-9 for US citizens/residents, or Form W-SBEN for non-resident aliens) before prize payments can be processed. Failure to provide these forms may result in delayed payment or additional withholding as required by law. Please direct all questions regarding tax withholding and documentation to ITG Treasurer, T.J. Tesh (treasurer@trumpetguild.org).