Jump to content
ATX Community

NT - Professional Athletes


Dave T

Recommended Posts

Coversation at lunch today began with discussing Joe Flacco's new contract and how much of a hit ( no pun intended ) he was taking in taxes.

The question then arose whether pro athletes pay state income tax to each state they play it ? Then, presuming that to be the case, do you actually have to play in the game to get taxed?

For example, a relief pitcher that comes in in the ninth inning to face one batter does he get taxed and someone who sits the bench the whole game not get taxed?

Just curious. Anyone have any pro athlete clients?

- Dave T

Link to comment
Share on other sites

Guest Taxed

Not sure about pro athletes, but I know that travelling bands do pay state taxes in various states that they get paid. I used to do the returns for a professional band that played in various states (NY, NJ, CT, MA, VT to name a few) and we had to file in each state because the bars and event promoters would issue them a 1099Misc and the accountant that did their taxes previously ignored the various states except their home stste and they got a demand letter.

Is your client getting a 1099 Misc??

Link to comment
Share on other sites

Yes to your first question. I am told that CA is very aggressive in pursuing "visiting athletes". That is why they are always hoping for playoffs to happen in the state. More revenue.

I am not sure about your second question. I believe it is per game, but you would have to check with someone who has those clients.

That would be interesting if you could structure your contract to say "athlete X will be paid $500,000 for each game played in Tennesee, Florida or Texas, and $50,000 for each game played in any other state." Wonder if CA and NY would throw a hissy fit.

Tom

Hollister, CA

  • Like 1
Link to comment
Share on other sites

Dave:

Since this is academic question, no, you don't have to play in the game to get taxed in that state. The Baseball players have it the worst, then the Basketball, and hockey throws in Canada taxes..

The football players divide into 10 games "out of State" and the rest presumed in the home teams stadium (8 reg season and 2 preseason, which are not paid for, but part of the calc if you get hired...) Then you have the issue of living in one state, and playing in another. Many athletes head to Florida or Texas for that reason.

Obviously the endorsement deal money and the NFL Players Association funds get taxed in the state of residence.

Rich

Link to comment
Share on other sites

Dave:

Since this is academic question, no, you don't have to play in the game to get taxed in that state. The Baseball players have it the worst, then the Basketball, and hockey throws in Canada taxes..

The football players divide into 10 games "out of State" and the rest presumed in the home teams stadium (8 reg season and 2 preseason, which are not paid for, but part of the calc if you get hired...) Then you have the issue of living in one state, and playing in another. Many athletes head to Florida or Texas for that reason.

Obviously the endorsement deal money and the NFL Players Association funds get taxed in the state of residence.

Rich

Rich,

This is just for fun, so please don't take offense. You seem to know the rules. What if the athlete is injured? Let's say Tony Romo (Dallas QB) is hurt and can't play against the 49ers this year in SF. Can he stay home with the trainer and never go to the game and still get taxed on that income in CA?

Tom

Hollister, CA

Link to comment
Share on other sites

>>Obviously the endorsement deal money and the NFL Players Association funds get taxed in the state of residence<<

That's not so obvious to California. FTB Pub 1017 says, "If by contract an athlete or entertainer is required to perform services in California on behalf of a sponsor, the payments received on the contract are generally considered to be California source income."

Examples of "services" include wearing a logo, using equipment, and being photographed.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...