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.
May 28, 2015, 12:39 AM EDT
The Warriors don’t care how it looked, they will take it.
Dwight Howard elbows Andre Iguodala but avoids flagrant foul and suspension – for now, at least (video)
May 27, 2015, 11:50 PM EDT
Rockets center elbowed Andre Iguodala high
May 27, 2015, 11:36 PM EDT
That sounds bad. Is that bad?
May 27, 2015, 11:15 PM EDT
“Hey!” -Kyrie Irving and Kevin Love, probably
May 27, 2015, 10:21 PM EDT
Will it stand?
May 27, 2015, 9:51 PM EDT
Who will it be (if anyone)?
May 27, 2015, 8:59 PM EDT
First Kobe, now Melo – Dudley goes scorched earth
May 27, 2015, 8:12 PM EDT
The Cavaliers are allowing 98.5 points per 100 possession in the playoffs, the best of the four teams to reach the conference Finals
May 27, 2015, 7:20 PM EDT
Will he become Anthony Davis’ next head coach?
Stephen Curry feels like there’s a bruise ‘all the way up and down’ his body, will likely wear arm sleeve in Game 5
May 27, 2015, 6:28 PM EDT
Warriors guard says he shot well with sleeve in shootaround
May 27, 2015, 5:35 PM EDT
If they want him gone, they just have to pull the trigger on the firing. Otherwise, bring him back.
May 27, 2015, 4:47 PM EDT
The Hawks had an exciting season, they filled an arena that in past years felt like a mausoleum, they played beautiful basketball for months at a time.
May 27, 2015, 3:59 PM EDT
May 27, 2015, 3:23 PM EDT
Free agents will still come to the Lakers, but their pool may be smaller than some other teams because of Kobe.
May 27, 2015, 2:30 PM EDT
There were plenty of rumors to the contrary.
May 27, 2015, 1:50 PM EDT
Suns don’t need any more young players.
May 27, 2015, 1:10 PM EDT
Plenty has changed since LeBron re-joined the Cavaliers last summer.
May 27, 2015, 12:30 PM EDT
Hawks, too, have some decisions to make this summer.
May 27, 2015, 11:50 AM EDT
The offers won’t be as strong as they were in December.
Lakers GM Mitch Kupchak: ‘Anywhere from 4-8 players could be in consideration’ for No. 2 pick in NBA Draft
May 27, 2015, 11:10 AM EDT
Eight seems like too many, but Kupchak has proven that he knows what he’s doing.
- Harden struggles, Warriors role players step up leading team to Finals for first time in 40 years 0
- Dwight Howard hit with suspension-triggering technical foul 5
- PBT Extra: Cavaliers’ improved defense helps them to Finals 7
- Reports: Bulls getting closer to firing Tom Thibodeau 22
- PBT Extra: Despite ending, Hawks had season worth celebrating 3
- Bucks’ Jared Dudley: “Most guys don’t want to play with Kobe” 63
- PBT Extra: Expect a healthy Stephen Curry for Game 5… sorry Houston 4
- Hawks’ excellent season shouldn’t be discredited because of playoff exit 24