IMPORTANT NOTICE
For players winning prize money of $600 or over, and
for non-resident aliens winning prize money of any amount
FOR US RESIDENT PRIZES OF $600 OR MORE, OR WHICH WILL BRING THE TOTAL PRIZES YOU RECEIVE FROM THE SAME PAYER TO $600 OR MORE FOR THE CALENDAR YEAR: To receive a check, please bring your US Social Security card to all tournaments with prizes possibly this large. If you have no US social security number, the organizer must withhold and send to the IRS 30% of your prize. Prize checks will be written only to the winners, not to third parties.
IF YOU ARE A US RESIDENT WHO WAS PAID THROUGH PAYPAL IN 2022, we do not need your social security number and will not report your winnings. However for prizes totalling $600 or more paid in 2023, we need your social security number as we may be required to report your prize.
FOR ALL PRIZES, IF YOU ARE A NON-RESIDENT ALIEN, the organizer must withhold and send to the IRS 30% of your prize.
IF 30% OF YOUR PRIZE IS WITHHELD AND SUBMITTED TO THE IRS, you will receive a 1042 form in the following calendar year, usually in March. You may use this form to submit a tax return to the IRS, claim expenses, and attempt to recover some or all of the withheld tax.
WE DEDUCT ENTRY FEE from nonresident alien prizes and base the 30% withholding on the net total, however no tournament counts as negative income, so if you win nothing, no fee is deducted from your yearly total, and if you win less than the entry fee, the prize is not reported.
PRIZE WINNERS
If you received a total of $600 or more in one calendar
year (except PayPal) for prizes in tournaments held by Continental Chess, we are required to
report your winnings, address, and social security or tax ID number to the Internal
Revenue Service. Please click the link below to report this information to
Continental Chess on a secure server.
CLICK HERE TO REPORT THE INFORMATION ON A SECURE SERVER
After you click the above link, go to the bottom of the list of tournaments to "send info to CCA" and click "buy one now" on that line. Then fill out the info as if you are entering a tournament. For "section" select "send info to CCA."
If you enter info for 2023, you will receive a 1099 form from us, including your total winnings for 2023, in late January or early February, 2024. This form will indicate the amount you need to report when filing your tax return; however you do not need to send the form to the IRS with your return.
If you have any questions, write to director@chess.us.
Thank you for your assistance!