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 1, 2015, 12:29 PM EDT
Nice get for Toronto, and a Hawks team that won 60 games is going to look very different next season.
Report: Spurs reach deal to trade Tiago Splitter to Hawks, create cap space for LaMarcus Aldridge offer
Jul 1, 2015, 12:03 PM EDT
The Spurs can now offer Aldridge the chance to return to his native Texas and walk right onto a serious title contender.
Jul 1, 2015, 11:45 AM EDT
That’s a great signing for San Antonio.
Report: Kobe Bryant was ‘very good’ in Lakers meeting with LaMarcus Aldridge, which went ‘really well’
Jul 1, 2015, 11:26 AM EDT
Lakers feel better about this one than previous meetings with Carmelo Anthony and Dwight Howard.
Jul 1, 2015, 10:38 AM EDT
This was expected. But what happens with Dwyane Wade?
Jul 1, 2015, 9:55 AM EDT
A bit of a surprise.
Jul 1, 2015, 9:54 AM EDT
Solid move by Chicago at an extremely reasonable price.
Report: Blazers, Damian Lillard nearing agreement on five-year max contract extension worth $120 million
Jul 1, 2015, 9:15 AM EDT
Lillard’s worth it, but Portland right now really had no choice.
Jul 1, 2015, 8:30 AM EDT
Prince played better than you’d think last season, but he will turn 36 this coming year.
Jul 1, 2015, 8:00 AM EDT
Does putting Rajon Rondo, DeMarcus Cousins and George Karl in close proximity to each other for an entire NBA season seem like a good idea?
Jul 1, 2015, 3:11 AM EDT
The Bucks locked him up long-term after a breakout season.
Jul 1, 2015, 2:36 AM EDT
The Rockets have the right to match any offer.
Jul 1, 2015, 2:12 AM EDT
Lopez gets three years, $60 million; Young gets four years, $50 million.
Jul 1, 2015, 1:58 AM EDT
The Hawks, Nuggets and Kings are also interested.
Jul 1, 2015, 12:41 AM EDT
This was expected.
Jul 1, 2015, 12:39 AM EDT
A replacement for Nicolas Batum on the wing.
Jul 1, 2015, 12:15 AM EDT
Davis will be in New Orleans through at least 2020.
Jul 1, 2015, 12:13 AM EDT
Love said he was committed to Cleveland, now he is flirting with other teams.
Jun 30, 2015, 11:00 PM EDT
Kobe being in the room is not guaranteed, but it helps.
Jun 30, 2015, 10:00 PM EDT
I didn’t know he had that in him.
- Report: Spurs reach deal to trade Tiago Splitter to Hawks, create cap space for LaMarcus Aldridge offer 17
- Report: Heat, Goran Dragic agree to five-year deal worth $90 million 37
- Report: Paul Millsap had midnight meeting with Orlando, will decide between Magic and Hawks 13
- Report: Blazers, Damian Lillard nearing agreement on five-year max contract extension worth $120 million 17
- Report: Kawhi Leonard, Spurs reach deal for five-year, $90 million contract extension 19
- Anthony Davis and Pelicans agree to five-year, $145 million contract extension 36
- Report: Kevin Love to meet with Lakers later in week 16
- Report: Lakers working to clear out more cap space to land both LaMarcus Aldridge, DeAndre Jordan 33