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.
Sixers’ K.J. McDaniels with a two-handed rejection, has more preseason blocks than Anthony Davis (VIDEO)
Oct 21, 2014, 8:30 PM EDT
McDaniels has amassed 14 blocked shots this preseason — more than guys like DeAndre Jordan and Anthony Davis.
Oct 21, 2014, 7:35 PM EDT
Solid big men get overpaid consistently and have for many years. In light of that fact, this deal is just fine.
Oct 21, 2014, 6:33 PM EDT
Kirk Hinrich will get the start.
Oct 21, 2014, 5:40 PM EDT
James Harden’s defense isn’t as bad as some people say… but it’s not good.
Oct 21, 2014, 4:50 PM EDT
It’s possible, but not likely, that Nets owner Mikhail Prokhorov will buy the rest of the building.
Oct 21, 2014, 4:01 PM EDT
The Lakers defense makes them lottery locks.
Oct 21, 2014, 3:30 PM EDT
Philadelphia, Oklahoma City and Milwaukee still need five more teams to join their side
Oct 21, 2014, 2:49 PM EDT
Watch after the draft lottery next year when a team like the Lakers, Celtics or Knicks jumps way up the board so they can draft a young star and some smaller market owners cry it’s unfair.
Oct 21, 2014, 2:07 PM EDT
The only precedent for LeBron, Kevin Love and Kyrie Irving? LeBron, Dwyane Wade and Chris Bosh
Oct 21, 2014, 1:35 PM EDT
Iman Shumpert is wearing a hat with a clock on it. That is all.
Oct 21, 2014, 12:59 PM EDT
Center played just five games last season
Oct 21, 2014, 12:22 PM EDT
Chicago point guard still clearly has respect of teammates
Oct 21, 2014, 11:45 AM EDT
New Orleans adds its missing link in Omer Asik
Oct 21, 2014, 11:14 AM EDT
Expect him to be out until mid- to late December.
Oct 21, 2014, 10:15 AM EDT
They’re not as good as Mark Cuban thinks they are, but they are improved.
Oct 21, 2014, 9:44 AM EDT
Projecting Cleveland’s win total based on its minute distribution against the Bulls
Oct 21, 2014, 9:16 AM EDT
Celtics waived Lucas during offseason that saw him traded twice
Oct 21, 2014, 8:36 AM EDT
Celtics point guard, coach Brad Stevens leave open possibility of Rondo not missing any games after breaking hand
Oct 21, 2014, 8:00 AM EDT
He had 30 points on 18 shots.
Oct 21, 2014, 12:05 AM EDT
Clippers point guard on his own level in post-Magic Johnson NBA
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- Kevin Durant on return: “I’m not going to rush it all” 12
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- LeBron James: “(The Bulls) are a team that’s much better than us right now just off chemistry” 36
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