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re: Athletes paying taxes in states they are not employed by/reside in?
Posted on 12/18/24 at 9:51 pm to ChestRockwell
Posted on 12/18/24 at 9:51 pm to ChestRockwell
NBA southwest is the most tax efficient division in sports.
If you play for the Grizz, Rockets, Spurs or Mavs the vast majority of your games are in no income tax states.
If you play for the Grizz, Rockets, Spurs or Mavs the vast majority of your games are in no income tax states.
1
Posted on 12/18/24 at 9:55 pm to Will Cover
At least in the NFL I think their regular salary is divided out over the 17 regular season games not the entire year. Play off games have a set rate. So each game they earn a paycheck where ever the game is.
Bonuses and similar are treated differently.
Bonuses and similar are treated differently.
Posted on 12/18/24 at 9:56 pm to Will Cover
quote:
understand what you are getting at here. However, there are plenty of businesses who hire people to travel for them, and they "earn" an income for themselves and the business they work for in the state they are traveling to, but pay zero taxes, because the employer is not based out of the state they traveled to, and the employee does not live in the state he/she traveled to.
Just because they didn’t pay taxes in a state they worked in does not mean they were not required to do so. Could be as simple as the state was not aware they were physically present while working.
Regarding the employer, my understanding is that as long as they do not have a physical location in a specific state they are not required to adhere to those state income tax withholdings. That burden falls onto the employee
Posted on 12/18/24 at 9:56 pm to Will Cover
quote:
sincerely ask this, because if you take a traveling sales person and apply this same scenario, the traveling sales person would not pay income taxes to California.
Most states have specific laws for athletes, entertainers, etc. But many many traveling employees (like salespeople) have to pay taxes in multiple states.
Posted on 12/18/24 at 9:59 pm to Weekend Warrior79
quote:
At least in the NFL I think their regular salary is divided out over the 17 regular season games not the entire year. Play off games have a set rate. So each game they earn a paycheck where ever the game is.
It’s calculated on duty days. Each league has a different number of duty days. Players aren’t just working on game day
quote:
Regarding the employer, my understanding is that as long as they do not have a physical location in a specific state they are not required to adhere to those state income tax withholdings.
Nexus, but if you are sending employees into a state you have nexus
Posted on 12/18/24 at 9:59 pm to Will Cover
My spouses employer warns them of working more than a couple of weeks from a vacation or vacation home or they could have to pay taxes.
Posted on 12/18/24 at 10:04 pm to Mingo Was His NameO
Correct. They are taxed in the state where they played the game. It’s not unusual for a player to file multiple state income tax returns. I can tell you that the more savvy veterans take state tax liability for the team into consideration during free agency.
Posted on 12/18/24 at 10:14 pm to ChestRockwell
quote:
Heat and Magic too.
Good but not as good. They still play more road games in income tax states and they have more games in bad tax places like NY and DC.
Worst is probably Pacific division. Huge number of games not only in California, but in California cities that levy city income tax as well.
Posted on 12/18/24 at 10:27 pm to Will Cover
quote:
I understand what you are getting at here. However, there are plenty of businesses who hire people to travel for them, and they "earn" an income for themselves and the business they work for in the state they are traveling to, but pay zero taxes, because the employer is not based out of the state they traveled to, and the employee does not live in the state he/she traveled to.
I think logically there’s a little bit of difference between, say, a salary employee traveling to attend a conference/meeting/etc. vs. someone being paid for a specific job that they do in another state.
Remember that NFL players receive “game checks” each week. So I think it’s probably pretty cut-and-dried compared to most other examples of people traveling for work.
I realize there’s probably a lot of grey between those two examples, just trying to offer a laymen’s explanation for why all situations are not treated the same.
Posted on 12/18/24 at 10:30 pm to Mingo Was His NameO
quote:
Because they worked and earned the money in California.
But the team that is paying him is not in California but then again it’s California. They want to tax anything. Even shite they have no control over
Posted on 12/18/24 at 10:31 pm to Miketheseventh
quote:
But the team that is paying him is not in California but then again it’s California. They want to tax anything. Even shite they have no control over
Live in Texas and work in Louisiana and check and see if Louisiana says you owe them income tax or not
Posted on 12/18/24 at 10:35 pm to Will Cover
quote:
the traveling sales person would not pay income taxes to California.
Is that how it’s supposed to be though? I worked as a field engineer previously and did long term projects in different states. I would pay the taxes for the respective state that I was in at the time.
Posted on 12/18/24 at 10:35 pm to Mingo Was His NameO
When I was working we would go work outages all over the country for months at a time. I never paid taxes in any other state
Posted on 12/18/24 at 10:40 pm to Will Cover
I imagine the same goes for musicians on tour around the country.
I figure states wanna get that TayTay Tax revenue, too
I figure states wanna get that TayTay Tax revenue, too
Posted on 12/18/24 at 10:41 pm to Miketheseventh
quote:
When I was working we would go work outages all over the country for months at a time. I never paid taxes in any other state
You’ll get credit for tax paid to your state of residence and states don’t have the want to, time, or resources to find you to get their 20% of your state income tax.
They do however want to get the 20% of the millions that high earners pay.
Just because you didn’t doesn’t mean you weren’t supposed to
Posted on 12/18/24 at 10:52 pm to Will Cover
quote:wrong. Of course it's more complicated but either you are ignorant to this or someone isn't paying their taxes correctly
I understand what you are getting at here. However, there are plenty of businesses who hire people to travel for them, and they "earn" an income for themselves and the business they work for in the state they are traveling to, but pay zero taxes,
Posted on 12/18/24 at 10:54 pm to Miketheseventh
quote:
When I was working we would go work outages all over the country for months at a time. I never paid taxes in any other state
There is a difference between not paying and not being required to pay.
You might not have been on tv earning that check based on a very large salary that’s likely published. Knowing what professional athletes played games in the state (and when) and the amount paid in that game check seems a lot easier to figure out and prove than regular people traveling around for work.
This post was edited on 12/18/24 at 10:56 pm
Posted on 12/18/24 at 10:54 pm to Will Cover
quote:
if you take a traveling sales person and apply this same scenario, the traveling sales person would not pay income taxes to California.
States have made the claim they do for earning in their borders. Hell, California went after truck drivers for the miles driven in their state. I don’t know if it ever gained traction though.
Posted on 12/19/24 at 5:19 am to Will Cover
quote:
However, when his employer (Houston Texans) travels to California for example, he has to pay income taxes to California. What is California's claim to his earnings?
They were earned in their state. And since TX doesn’t have state tax, they have no “claim” that would offset CA.
Ignoring the argument of whether they actually have a “claim” in the first place, this is pretty basic economic nexus.
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