At the end of last week, a young Fortnite player Kyle Giersdorf, who goes by his gamer tag “Bugha”, showed his pro skills, became the winner of Fortnite World Cup and earned $3 million. However, he won’t be able to take home all of this money. He may have to spend half of his prize money to pay taxes, due to US taxes.

Kyle “Bugha” Giersdorf was the winner of the Fortnite World Cup

According to a tweet of Ryan Friend from Rush B Media, the New York State will collect about $2.75 million from the Fortnite World Cup. In other tweets, Ryan said that the New York tax on prize winnings is 8.82%, while the US’ top tax bracket is 39.4%. It means that Bugha not only owes the New York State about $265,000 for winning the World Cup but also have to pay around $1.2 million for the federal government. In total, he will be taxed $1.5 million from his prize money and end up talking home approximately $1.5 million, which is only half of the number that he earned at the competition.

Ryan Friend’s tweets showed that Bugha will pay insane taxes

Although the fact that the New York State may receive $2.75 million from the event is a piece of good news, the number of money Bugha have to pay for taxes is still shocking to lots of people. As we know, state governments oftentimes impose a tax on prize winnings. However, to Bugha and his family, it may be an insult that US taxes ended up cutting his prize money in half.

Half of $3 million taxed is a large amount

This example is a reversal of recent news that in the UK, Rockstar Games has not paid any taxes over the past 10 years. Politically, there are different thoughts on taxation for a variety of reasons, but we can agree that $1.5 million tax is really huge. After all, Bugha still took a large chunk of money home, but half is also a large amount.