Million-dollar winner’s checks look glamorous on television. What fans do not see is what happens after the deposit. During a recent conversation on the Fore Play Podcast Plus alongside Fore Play Golf, Joel Dahmen pulled back the curtain on how PGA Tour earnings are actually handled.

When asked whether taxes are deducted before payment, the answer was blunt.

“No. We get the whole check, and then we have to put in our separate tax account,” Joel Dahmen said.

Before diving into specifics, let's understand how the PGA Tour pays pros. In the most basic sense, players are independent contractors, similar to how a tennis pro would function. They're paid based on their performance, but they must take care of all their expenses, including travel, their caddies, and more.

And in managing this money, Dahmen emphasized the importance of using accountants. “We pay a lot of money for it. It’s more than random Joe who’s going 9 to 5.”

The reason is simple. According to the IRS, federal income tax in the United States operates on a progressive system, with the top marginal rate currently at 37% for high earners. On top of that, professional athletes often owe state income tax in every state where they compete. It differs based on the state in which the event is being hosted.

“Most guys out here pay quarterly taxes. My wife just takes out 30% of every paycheck to a tax account, and then that thing grows throughout the year.”

He admitted the moment it hits hardest. When the accountant finally says it is time to pay. “That’s so much money that is going.”

Tax Reality Behind PGA Tour Millions

Joel Dahmen was quick to clarify that he was not complaining about earnings.

“You’re not bitching about how much money we’re making,” he said. “It’s a thing.” Joel even gave an example of Scottie Scheffler, as he puts it, “Think about guys making, well, Scotty, whatever, $25 million a year. He’s paying, what, five to 10 million in taxes on that.”

Dahmen raised a fair point. If we look at the top golfers in the world, they pay massive amounts in tax. Take Tiger Woods for instance. Back in 2021, according to Bunkered, he paid $65,000 a day in taxes after making over $60 million in earnings.

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Written by

Dolly Bhamrick

Edited by

Siddharth Shirwadkar