The Taxing Life of a Pro Athlete

The Taxing Life of a Pro Athlete

articles.latimes.com

If opening day is the best day of the year for professional athletes, then April 15 -- tax day -- is probably the worst. Especially now that 20 of the 24 states with franchises in at least one of the four major pro leagues -- the NFL, NBA, NHL and Major League Baseball -- have laws that require visiting athletes to pay state income tax for each game they play there.

(visit the link for the full news article)

What!!!

Visiting athletes who play games in other states have to pay taxes income taxes to the states they play their "away" games in?

This just sounds wrong to me!

As salaries have skyrocketed, the so-called "jock tax" has become widespread and controversial. Its imposition has raised questions of fairness and, for tax expert Joseph Henchman, has laid waste to the once-revolutionary prohibition on taxation without representation.

"Politicians are seeking to shift tax burdens to people that don't vote," he says. "It does create a rather disturbing trend because it essentially allows politicians to provide more government services than [citizens] are willing to pay for."

I always thought you only had to pay income tax to the state you live in.

These players are only in the state for a couple days a year, but are required to pay taxes on the money that the team they belong to, from another state, pays them!!!

In other words, the state they are playing an away game in is making them pay income tax on money that the players are being paid, from a company that resides in another state, to play that game in their state.

This just sounds wrong and illegal to me!!!

articles.latimes.com
(visit the link for the full news article)

[edit on 5/20/2009 by Keyhole]

thats kind of odd. i think its great for some that make over 10 million a year, but I know that figure is not what most of them make. In the end the rising prices will just be passed on to the stadium venue, making the ticket prices EVEN HIGHER. i predict there will be a time when only the top professional athletes will be able to afford going to see a game.

As far as I am concerned these celebrities and athletes can afford to pay more than we do in taxes. If it prevents the common person from having to pay more, then by all means, Shaq can dish out some green.

That's not to say that they aren't hard working people who are very talented, that would be foolish of me, however, I do believe we pay these people far too much money for something that serves only as entertainment in today's world.

We should be paying doctors and teachers these kinds of salaries.

~Keeper

Originally posted by tothetenthpower
As far as I am concerned these celebrities and athletes can afford to pay more than we do in taxes. If it prevents the common person from having to pay more, then by all means, Shaq can dish out some green.

That's not to say that they aren't hard working people who are very talented, that would be foolish of me, however, I do believe we pay these people far too much money for something that serves only as entertainment in today's world.

We should be paying doctors and teachers these kinds of salaries.

~Keeper

[edit on 5/20/2009 by greeneyedleo]

The sad thing is, we are the reason why these athletes get paid this much. If we weren't so damn ready to pull out a credit card and spend $1500 to go watch one game and have a beer and hot dog, these franchises would fail and be forced to sell tickets at reasonable prices and therefore paying atheletes a reasonable salary. But this will never change b/c corporations are buying up seats at top dollar so their customers who don't even care about the sport can go and watch a game they could care less about.

Back on topic, I'm no tax attorney, but this tax seems unfair and does seem illegal. I live in MS but work in TN. I am only taxed MS taxes. If this law where to apply to me, I would have to move to TN as this economy is effecting me rather harshley.

[edit on 20-5-2009 by Mudman21]

Originally posted by Mudman21


Back on topic, I'm no tax attorney, but this tax seems unfair and does seem illegal. I live in MS but work in TN. I am only taxed MS taxes. If this law where to apply to me, I would have to move to TN as this economy is effecting me rather harshley.

[edit on 20-5-2009 by Mudman21]

[edit on 5/20/2009 by greeneyedleo]

reply to post by greeneyedleo


You're right.

I certainly agree that they should be be double taxed in every state they play, since most teams will visit a dozen or more states during a season.

Perhaps my comments were a little brash and not well thought out.

~Keeper

All athletes who this applies to should go on strike.

They decline all payments and not bring in one single dime. They have enough in the bank to live very nicely. Lets see how the state likes tax season when none of the athletes have to pay any taxes income taxes.


Next thing you know we will be paying state tax to every state we visit. Just because we were there.

This has been around for awhile. The theory is that they are working in that state and therefore are responsible for the taxes.

Here is something interesting I found on this.

Players will receive a credit on the home state tax return if and when they pay taxes to another state. So generally, the tax paid to other states offsets the tax players would have to pay their home state. I say generally, because some states like Texas & Florida don't have an income tax.

www.reallifedebt.com...

In my area, we pay income tax in the city of employment and income tax to our city of residence in addition to our real property tax. This tax is not deducted from our paychecks. We are billed quarterly based on an estimated tax amount. When we file annually, we are billed or refunded based on our taxable amount earned as compared to the estimate. It is ridiculous. Especially if you receive a bonus that is more than expected.

I have no pity for the big league athletes. I just hope that the minor league ball players aren't getting whacked. I once knew a minor league pitcher who held a second job to make ends meet. Luckily, he had a very flexible employer.

reply to post by greeneyedleo


When I lived in Alabama, I lived in St. Clair County but worked in B'ham which was Jefferson County. I had to pay an occupancy tax which totaled about $15 a paycheck (I can't remember what the tax was called). It was a tax that people that lived outside the city and county had to pay. There were lawyers who continually fought this tax with no success. I paid it for years even though every week a new team of lawyers would say the tax was illegal and would fight to stop it.

[edit on 20-5-2009 by Mudman21]