Henley to lose huge chunk of Charles Schwab | Golf News

Russell Henley claimed his sixth profession PGA Tour title at the Charles Schwab Challenge, but the victory comes with a hefty tax invoice exceeding half a million {dollars} in prize money.

After monitoring down his fellow countryman, Henley seized control of the playoff, contested on the 18th gap, by drilling his method shot to within 5 toes of the pin. Cole’s second shot was equally spectacular, ending 13 toes from the outlet, but left him with his back against the wall.

Cole missed, setting up what Henley described as “as nervous as I’ve ever been over a putt in my life.” Despite the stress, the 37 12 months previous drained the short birdie putt to declare the top prize of more than $1.78 million, along with a number of further perks, including a 1982 Schwab Scrambler.

Henley now faces an estimated tax invoice of practically $700,000 under federal and Georgia state legal guidelines. As a high-income earner, the golfer falls into the top federal income tax bracket, which means roughly 37 % of his $1.78 million prize will go instantly to the federal authorities.

That quantities to more than $615,000 in federal income taxes alone, with an further $40,000 to $50,000 owed in Medicare taxes.

Henley, a Georgia resident, must also pay state income tax on his winnings. At Georgia’s current tax fee, that tacks on roughly $88,000 to his general tax burden.

Since the match was held in Texas, which doesn’t levy a state income tax, Henley will owe nothing to the Lone Star State. After taxes, Henley is projected to pocket just over $1 million of his $1.78 million windfall.

He will also be on the hook for journey bills and his caddie’s cut of the winnings, which usually falls between 10 to 15 % following a victory. These prices are typically categorised as business bills and might decrease a golfer’s taxable income.

Any golfer who claims the top prize at a match will probably be effectively acquainted with the hefty tax invoice that accompanies their win.

All issues thought-about, Henley, whose best outcome this 12 months prior to Sunday was a T3 at the Masters, will probably be delighted to return to the winner’s circle for the first time since last 12 months’s Arnold Palmer Invitational in March 2025.