Apr 16, 2012, 10:13 AM EST
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.
Mar 2, 2015, 11:21 AM EST
Trail Blazers’ Paul Allen falls to No. 2 among NBA owners
Mar 2, 2015, 10:32 AM EST
Trail Blazers center has moves – or at least a move
Mar 2, 2015, 9:53 AM EST
For some reason, Bulls fans boo this athletic feat
Mar 2, 2015, 9:07 AM EST
LeBron: ‘I have no idea why he would do that’
Mar 2, 2015, 8:30 AM EST
He remains out for the rest of this season at least.
Mar 2, 2015, 8:00 AM EST
Well played, Rockets.
Mar 2, 2015, 2:50 AM EST
We have video evidence Brandon Bass can dunk.
Mar 2, 2015, 1:17 AM EST
Contenders will be lined up to sign him.
Mar 1, 2015, 10:36 PM EST
They played like MVP candidates.
Mar 1, 2015, 8:59 PM EST
Harden got a technical foul for this.
Mar 1, 2015, 7:30 PM EST
As in six weeks left in the season.
Mar 1, 2015, 6:00 PM EST
Jordan shot 12 free throws against the Bulls.
Mar 1, 2015, 4:30 PM EST
The deadline for McGee to be waived in order to be eligible to join another team for the playoffs is midnight Sunday.
Mar 1, 2015, 3:31 PM EST
Another hit to Chicago’s roster.
Mar 1, 2015, 2:30 PM EST
Silver talked about the league one day sharing injury data at the MIT Sloan Sports Analytics Conference.
Mar 1, 2015, 1:00 PM EST
Mar 1, 2015, 11:30 AM EST
A look at upcoming retro releases of the Jordan VIII, Jordan 1, Jordan XIV Low, and the Jordan VII.
Mar 1, 2015, 10:00 AM EST
Odd timing, only because fans in Phoenix have historically shown up for games against San Antonio and Los Angeles.
Mar 1, 2015, 8:33 AM EST
Beasley throws one down in his second game back with the Heat.
Mar 1, 2015, 12:22 AM EST
He will be missed.
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- Report: Sixers agree to buyout with JaVale McGee; he can sign with contender 23
- Bulls’ Jimmy Butler leaves with elbow injury, does not return (VIDEO) 0
- Adam Silver says data may prove Gregg Popovich right in terms of resting multiple players 13
- Rockets general manager Daryl Morey proposes loosening NBA trade rules 6
- Derrick Rose starts rehab, in “good spirits” after knee surgery 11
- Russell Westbrook undergoes procedure to address cheek fracture, will be re-evaluated next week 6
- Russell Westbrook takes knee to face, it leaves dent (VIDEO) 15