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.
Apr 24, 2014, 9:43 PM EDT
It’s real, and it’s spectacular.
Apr 24, 2014, 8:44 PM EDT
Westbrook’s level of annoyance is impressive.
Apr 24, 2014, 7:45 PM EDT
This is just interesting to watch.
Apr 24, 2014, 5:46 PM EDT
Sorry KD, but through two games Allen has been the MVP of this series.
Apr 24, 2014, 5:00 PM EDT
No suspension for McRoberts. Somehow.
Apr 24, 2014, 3:59 PM EDT
Jabari Parker says he passed more than Carmelo because he had a better team to pass to.
Apr 24, 2014, 3:17 PM EDT
He wants Steph Curry money, but he’ll likely get more like $7 million a year.
Apr 24, 2014, 2:32 PM EDT
Gasol basically wants D’Antoni gone, but even then he likely moves on.
Apr 24, 2014, 1:56 PM EDT
Oscar Robertson thinks ‘Melo should get out of Dodge (and go to Houston).
Apr 24, 2014, 1:22 PM EDT
Kevin Pritchard tweets message from Pacers president
Apr 24, 2014, 12:44 PM EDT
Less-heralded Damien Inglis declares, too
Apr 24, 2014, 12:01 PM EDT
He will not be getting a baseball contract soon.
Apr 24, 2014, 11:26 AM EDT
Dwyane Wade does writeup on Serena Williams
Apr 24, 2014, 10:52 AM EDT
Harden is frustrated. He should be, shooting under 30 percent for two games.
Apr 24, 2014, 10:19 AM EDT
Grizzlies guard gets Joe Dumars Trophy over Jeff Green, Channing Frye, Bradley Beal, Damian Lillard and Mike Dunleavy
Apr 24, 2014, 9:24 AM EDT
Trail Blazers forward is averaging 44.5 points trhough two games
Apr 24, 2014, 8:46 AM EDT
Dwight Howard was aggressive early and put on a show, but LaMarcus Aldridge won the war.
Apr 24, 2014, 8:00 AM EDT
All three series Thursday night are tied 1-1.
Apr 24, 2014, 2:48 AM EDT
LA has 89 points and 26 rebounds in two games.
- Josh McRoberts fined $20,000 for forearm foul to LeBron’s throat 41
- Oscar Robertson says if he were Carmelo Anthony “I would leave today” 47
- Larry Bird, through Pacers general manager, says Frank Vogel’s job is safe 10
- Can LaMarcus Aldridge break the all-time single-playoff scoring record? 25
- Thursday NBA playoff previews: Which Indiana team shows up? 11