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.
Sep 2, 2014, 12:00 AM EDT
Miami reportedly most interested in Emeka Okafor
Sep 1, 2014, 10:30 PM EDT
“I’m feeling good right now. Just trying to get in better shape, get in better condition, so that when I do need to score the ball, then it’ll be there.” —Derrick Rose
Sep 1, 2014, 9:00 PM EDT
Halle Berry is officially married still, for the record.
Sep 1, 2014, 7:30 PM EDT
Ellington, acquired in trade from Knicks, likely stretched
Sep 1, 2014, 6:00 PM EDT
Former Wizard provides depth at small forward following Paul George’s injury
Sep 1, 2014, 4:30 PM EDT
“If you were at our practices and our training camp, anybody that was there, they would see why I made the team.” —Mason Plumlee
Sep 1, 2014, 3:00 PM EDT
Elephant dunks a basketball.
Sep 1, 2014, 1:31 PM EDT
This makes more sense, but he could get moved near the deadline.
Sep 1, 2014, 11:59 AM EDT
This would be a solid pickup for the bench, especially at the league minimum.
Sep 1, 2014, 11:00 AM EDT
Ron Rothstein and Bob McAdoo lose bench spots, could stay with Miami
Sep 1, 2014, 10:00 AM EDT
This is a win for Jay-Z’s Roc Nation.
Sep 1, 2014, 9:00 AM EDT
Harden’s reputation on the defensive end of the floor continues to grow.
Sep 1, 2014, 8:00 AM EDT
Whether he asked out or not doesn’t really change his situation much.
Sep 1, 2014, 12:30 AM EDT
Blatche being Blatche.
Aug 31, 2014, 11:00 PM EDT
Turkoglu didn’t do much in L.A. last year, but Chris Paul recently touted the importance of consistency in the Clippers’ chances for success next season.
Aug 31, 2014, 9:30 PM EDT
France picked up a nice win over Argentina.
Aug 31, 2014, 7:59 PM EDT
James Harden makes the PUJIT work for him.
Aug 31, 2014, 6:29 PM EDT
The energy of Kenneth Faried helped Team USA pull away in the second half.
Aug 31, 2014, 5:31 PM EDT
Terry was never going to be a fit in Sacramento, but could be a nice veteran addition for a Rockets team that plans on contending next season.
Aug 31, 2014, 5:00 PM EDT
Franklin only played one NBA season, but this will open up a roster spot in Memphis.
- Derrick Rose after first back-to-back in years: “I’m feeling good right now” 1
- Report: Rajon Rondo wants to start season with Celtics, see how things unfold 11
- Rajon Rondo’s agent denies they asked Celtics for a trade 14
- Team USA trails at the half, then pulls away for 98-77 win over Turkey at FIBA World Cup 19
- Report: Nike nearing deal to keep Kevin Durant for next 10 years 21
- Report: Rajon Rondo has told Celtics ‘he wants out’ 68
- World Cup Day 1 roundup: Brazil with big win, Andray Blatche puts on a show 5
- USA cruises past Finland in World Cup opener, 114-55 18