Children and taxes from a contest

[kiddy law]

There is a running feud on a video game site I visit about the legality of minors from all over the world attending a championship in Taiwan.

I know that you are supposed to specialize in the tax laws of a certain state. If you could give any concrete advice on the laws of your state of choice, or even a few educated guesses on the other subject, I will greatly appreciate it.

link to thread You will probably want to skip to the end, where it is getting into legal stuff.

game site, rules at the bottom

Thank you anyone who can at least give a qualified opinion.

 

[Snipes5]

What does this have to do with taxes? A minor cannot enter into a contract.

The obligation to pay taxes has nothing to do with contracts.

IF a minor wins a prize, the minor is obligated to pay taxes to the US government, and possibly to their home state, if applicable, based on the tax laws in force at the time.

Simply stated, if a US Citizen or Permanent Resident wins a prize or earns money ANYWHERE on the planet, taxes must be paid to the US, regardless of current residence, and irrespective of where the income/prize originated.

If you want cites, look up 26 US Code, and search for "Worldwide Income". That should cover it.

Snipes