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 29, 2015, 8:47 PM EDT
Andrew Wiggins and Karl-Anthony Towns are about to be finishing alley-oops from the best lob passer in the game.
Jul 29, 2015, 7:47 PM EDT
Manu Ginobili is a stud.
Jul 29, 2015, 6:55 PM EDT
Kerr says Luke Walton is a future head coach in the NBA.
Jul 29, 2015, 6:31 PM EDT
Toronto has shifted the roster to be more defensive, and be able to go smaller.
Jul 29, 2015, 5:21 PM EDT
Jimmy Kimmell is the best part.
Jul 29, 2015, 4:22 PM EDT
Rex Kalamian and Andy Greer also join Dwane Casey’s staff
Jul 29, 2015, 3:35 PM EDT
Enter Andrei Kirilenko to save the day?
Jul 29, 2015, 2:48 PM EDT
Will anyone claim him?
Jul 29, 2015, 2:03 PM EDT
Cavaliers star has avoided making a public decision
Jul 29, 2015, 1:04 PM EDT
If Brazil qualifies through FIBA Americas Championship, that could close door for another North/South American team from qualifying
Jul 29, 2015, 12:00 PM EDT
Lakers were in a bad place when Jackson first stepped away
Jul 29, 2015, 11:11 AM EDT
Brooklyn owner praises Adam Silver for filling in
Jul 29, 2015, 10:13 AM EDT
Cavaliers star also addresses his favorites – including place to play, rapper, and teammates
Jul 29, 2015, 9:26 AM EDT
He’ll likely compete with Aaron Harrison to make regular-season roster
Jul 29, 2015, 8:31 AM EDT
Cleveland’s Tristan Thompson and J.R. Smith head the list.
Jul 29, 2015, 8:00 AM EDT
Bounce passes are less effective in baseball.
Jul 29, 2015, 12:05 AM EDT
Cuban said presidential candidate is ‘probably the best thing to happen to politics in a long, long time’
Jul 28, 2015, 11:09 PM EDT
Could former summer-league standout fill Golden State’s need for an off-the-bench shooter?
Jul 28, 2015, 10:11 PM EDT
Hint, hint, hint
Jul 28, 2015, 9:16 PM EDT
Dallas also reportedly talking to Salah Mejri
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