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.
Jul 23, 2014, 1:00 AM EDT
As Cavaliers position themselves for Kevin Love trade, now was the time to sign No. 33 pick
Jul 23, 2014, 12:00 AM EDT
Bzdelik, who most recently coached Wake Forest, previously served as Nuggets head coach
Jul 22, 2014, 11:20 PM EDT
Bieber wearing a Nets hat, so you know what that means…
Jul 22, 2014, 10:20 PM EDT
Donald’s lawyer says ruling might not come for years
Jul 22, 2014, 9:20 PM EDT
Devin Harris 2.0?
Jul 22, 2014, 8:20 PM EDT
Brooklyn reaches regular-season roster limit of 15 players
Jul 22, 2014, 7:22 PM EDT
Utah reportedly trades John Lucas III, Malcolm Thomas and Erik Murphy to Cleveland for Carrick Felix, second-round pick and $1 million
Jul 22, 2014, 6:53 PM EDT
Sterling will be removed as Clippers owner one way or another because he is toxic to the organization right now.
Jul 22, 2014, 6:02 PM EDT
He’s going to get some of Paul Pierce’s minutes.
Jul 22, 2014, 5:11 PM EDT
Adam Silver does the classy thing. Again.
Jul 22, 2014, 4:20 PM EDT
Evan Turner is now a reclamation project — if he wants to get paid he has to become more efficient.
Jul 22, 2014, 3:38 PM EDT
It means the Timberwolves want to send Kevin Martin out in the Love deal, Cavs trying to make that happen.
Jul 22, 2014, 2:46 PM EDT
Once signed, he can’t be traded for 30 days … to the Timberwolves, for example.
Jul 22, 2014, 2:04 PM EDT
Taj Gibson and Jimmy Butler would reportedly be sent to Minnesota.
Jul 22, 2014, 1:42 PM EDT
Blake Griffin, James Harden, Kawhi Leonard and Damian Liillard among players who would face fines if they participated in a planned exhibition in Manila.
High school standout Emmanuel Mudiay skips college for China payday. You’ll see more of this if age limit goes up.
Jul 22, 2014, 1:01 PM EDT
If the age limit jumps to 20 more players will choose getting paid over college.
Jul 22, 2014, 12:27 PM EDT
Wizards take a more subtle approach than some of the others we’ve seen.
Jul 22, 2014, 11:49 AM EDT
Rookies Doug McDermott and Marcus Smart make the cut to train with the National Team in Vegas.
Jul 22, 2014, 11:13 AM EDT
Vujacic is known for his time with the Lakers, and hasn’t played meaningful minutes since 2011.
Jul 22, 2014, 10:37 AM EDT
Kings go nuts after winning Summer League championship.
- Justin Bieber and Kevin Durant share brunch (photo) 8
- Clippers CEO: If Sterling remains owner then Doc Rivers, players, sponsors all ready to bolt 43
- Report: Cavaliers trying to acquire other players to put in Kevin Love trade 54
- Report: Bulls making push to trade for Kevin Love 70
- Seven standout players from Las Vegas Summer League 10
- Maverick Carter: LeBron James and Dwyane Wade still speak nearly daily 37
- Red hot Ray McCallum leads Sacramento Kings to Summer League title with 77-68 win against Houston 3
- Lakers great Michael Cooper diagnosed with cancer 16