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.
Aug 27, 2014, 12:25 AM EDT
The point guards made this blowout more fun to watch.
Aug 26, 2014, 11:30 PM EDT
I don’t see what could possibly go wrong here.
Aug 26, 2014, 10:30 PM EDT
Milwaukee’s trade with Clippers cleared a roster spot
Aug 26, 2014, 9:30 PM EDT
Aug 26, 2014, 8:35 PM EDT
Former Cavaliers center, 39, has been retired three years
Aug 26, 2014, 7:40 PM EDT
Glen Taylor also questions whether Cleveland should offer Love five-year contract
Aug 26, 2014, 6:45 PM EDT
Murry receives $250,000 guarantee
Aug 26, 2014, 5:55 PM EDT
Derrick Rose struggles off the bench against Slovenia
Aug 26, 2014, 5:23 PM EDT
Oklahoma City will create trade exception, and Philadelphia will waive Thabeet
Aug 26, 2014, 4:55 PM EDT
Kevin Love: ‘My decision’ swayed by LeBron James calling just after choosing Cavaliers in free agency
Aug 26, 2014, 4:20 PM EDT
Number of camera positions behind baseline to be halved
Aug 26, 2014, 3:27 PM EDT
Clippers limit their present and future, and the Bucks gain an easy asset
Aug 26, 2014, 2:28 PM EDT
Cleveland not offering assets as of yet, so Denver’s not biting.
Aug 26, 2014, 1:51 PM EDT
Career three-pointers made is the only category where this statement begins to make any sense.
Aug 26, 2014, 1:09 PM EDT
Spurs, Bulls, Thunder next on the list.
Aug 26, 2014, 12:27 PM EDT
Brother of the Bucks’ Giannis turned down a more lucrative offer to play overseas.
Aug 26, 2014, 11:45 AM EDT
Well, she looks better shooting free throws than he does anyway.
Aug 26, 2014, 11:14 AM EDT
Turner wants to keep its NBA rights, and with negotiations looming, the company has planned layoffs in order to have the necessary cash on hand.
Aug 26, 2014, 10:31 AM EDT
Utah also adds Dee Bost, Jack Cooley and Brock Motum
Aug 26, 2014, 9:50 AM EDT
The octopus wanted to opt out of Minnesota, too, but has fewer free agent options.
- Timberwolves owner: Kevin Love might regret trade because he’ll be third banana with Cavaliers 31
- Anthony Davis and Kenneth Faried lead Team USA in final World Cup tune-up 14
- Thunder trade Hasheem Thabeet to 76ers 27
- From late-arriving to a LeBron James favorite, Kevin Love comes full circle 14
- Clippers trade Jared Dudley and first rounder to Bucks for Carlos Delfino and Miroslav Raduljica 15
- Report: Cavaliers trying to trade for Nuggets’ Timofey Mozgov 23
- Cavaliers, with LeBron James and Kevin Love, favored by oddsmakers to win 2015 NBA title 29
- Scout says Carmelo Anthony can be good triangle fit — if he moves the ball 20