Apr 16, 2012, 10:13 AM EDT
Send your taxes in — they have to be postmarked (or e-filed) by Tuesday, April 17.
Which is a pain for you and me, but our taxes are not complicated at all compared to those of professional athletes. I’m not saying feel sorry for them — they make a lot of money and hire people to do their taxes for them — but their taxes are a mess.
And it all goes back to Michael Jordan and him celebrating the 1991 NBA championship in California. It was the first of the Bulls six titles, and it was the first of the “jock tax.” Inside Hoops did a great post as a reminder the other day.
As the story goes, soon after the celebrations, parades and excitement of the ’91 Finals, the State of California notified Michael Jordan that he would owe taxes for the days he spent in Los Angeles. In direct response to this new egregious policy, Illinois passed a bill famously known as “Michael Jordan’s Revenge” – imposing income taxes on athletes from California and any other state that imposed a tax on their residents. Many city and state governments followed suit, seizing the opportunity to reach into the pockets of visiting athletes. Today, nearly every state that hosts professional sports teams has enacted their own Jock Tax policy. Even city local taxing authorities such as Cleveland, Kansas City, Detroit and Philadelphia established similar rules independent of the state.
The Jock Tax is a politically expedient tax — you are not taxing people who live and vote in your district (or not enough of them to matter) and it’s easy to say “they make millions.” Where you fall on the legitimacy of that tax really says a lot more about where you fall on taxes and tax rates in general, that’s not a discussion we’re going to get into today.
But because of it, athletes’ taxes are complicated. Like Inside Hoops points out, if you are a Chicago native with a home there but you play for the Knicks, you will owe resident taxes in New York and Illinois, plus the “jock tax” in 20 or more other states. Have fun with that form.
And by the way, coaches are included.
Oct 2, 2014, 12:25 AM EDT
Stephen Curry, Klay Thompson, Andre Iguodala, David Lee and Andrew Bogut dominated last season and return for more
Oct 1, 2014, 11:15 PM EDT
Kobe takes championship-or-bust mentality
Oct 1, 2014, 10:20 PM EDT
George wants to re-join the Pacers for the playoffs
Oct 1, 2014, 9:25 PM EDT
Thunder forward says he doesn’t (unless he’s joking like Kevin Martin)
Oct 1, 2014, 8:30 PM EDT
Get fouled on a missed 2-pointer – one free throw worth two points
Get fouled on a missed 3-pointer – one free throw worth three points
Oct 1, 2014, 7:35 PM EDT
OK, what did I get wrong?
Oct 1, 2014, 6:40 PM EDT
Two young players trying to prove to new coaches they deserved minutes. This is a real setback for both.
Oct 1, 2014, 5:50 PM EDT
The show is on Disney XD. I suppose there are worse things your child could watch.
Man sues Madison Square Garden saying he was ejected from Knicks game for saying “Carmelo, you stink”
Oct 1, 2014, 5:01 PM EDT
A Madison Square Garden spokesman called the lawsuit “frivolous.”
Oct 1, 2014, 4:20 PM EDT
Dirk loves him some Hoff.
Oct 1, 2014, 3:40 PM EDT
Thing is, Rodman fit the triangle and what Jackson wants to do with a team. Smith…. not so much.
Oct 1, 2014, 3:01 PM EDT
Monroe had a busy offseason in terms of appearances in the NBA’s news cycle.
Oct 1, 2014, 2:21 PM EDT
LeBron is taking on a leadership role early in his second stint in Cleveland.
Oct 1, 2014, 1:41 PM EDT
Broken hand is supposed to sideline Rondo for 6-8 weeks.
Oct 1, 2014, 1:00 PM EDT
I list my personal picks for top five backcourts.
Oct 1, 2014, 12:21 PM EDT
Second round pick foregoing additional guaranteed dollars in order to bet on himself.
Oct 1, 2014, 11:39 AM EDT
Reminder not to believe everything you read, especially if it’s attributed to ‘a source.’
Oct 1, 2014, 11:00 AM EDT
Cousins was tied for the league lead with 16 last season.
Oct 1, 2014, 10:00 AM EDT
The new-look Hornets, with Lance Stephenson in tow, are hoping to build on a playoff run and a promising young core.
Oct 1, 2014, 9:30 AM EDT
Kobe wants to shake the rust off before the games count for real later this month.
- Hey John Wall/Dion Waiters, Stephen Curry says Warriors have best backcourt. And he’s right. 41
- ProBasketballTalk 2014-15 Preview: Charlotte Hornets 5
- Kobe Bryant plans to play in all 8 preseason games for Lakers 11
- ProBasketballTalk 2014-15 Preview: Miami Heat 9
- Mike Miller points to him being amnestied as start of LeBron James leaving Miami 15
- Kobe Bryant thinks he could physically play beyond contract extension 14
- Trey Burke, in wake of nude-photo scandal: ‘My judgments will be much better’ 11
- Report: Kevin Durant says he wants to play in 2016 Olympics (his free agent summer) 5