Phil Mickelson faces hefty tax bill for Scottish success
To see him smiling with his wife Amy and their three kids, and to hear him speak of his prospects for a career grand slam, you got the sense that money was the furthest thing from Phil Mickelson's mind after his thrilling, final-round 66 was more than enough to win the 142nd British Open at Muirfield on Sunday.
Still, this angle was inevitable. Six months after Mickelson complained about California's high taxes, K. Sean Packard, a CPA who does tax planning and prep for pro athletes, has penned an article for forbes.com that breaks down Phil's tax obligations in the U.K. after his victories at the Scottish and British Opens.
For his two weeks of play, the world’s best golfer (rankings be damned) earned £1,445,000, or about $2,167,500.Will that take any of the shine off Mickelson's honeymoon with the claret jug? Probably not. But in case anyone was wondering, we can cross Scotland off the list of places he might move if he ever leaves his home state.
The United Kingdom, which has authority to set Scotland’s tax rate until 2016, graduates to a 40% tax rate when income hits £32,010 then 45% when it reaches £150,000. Mickelson will pay £636,069 ($954,000, or 44.02%) on his Scottish earnings.
But that’s not all. The UK will tax a portion of his endorsement income for the two weeks he was in Scotland. It will also tax any bonuses he receives for winning these tournaments as well as a portion of the ranking bonuses he will receive at the end of the year, all at 45%.
(Photo: Andy Lyons/Getty Images)