Best Tax Thread Ever. Pay taxes in 18 states. Jock Tax.

[blackmonsters]

Thanks to something called the ?Jock Tax,? Tom Brady has to file taxes in at least 9 different states today. Lebron James has to file in at least 18. Linebacker-turned-accountant Neico Teipel explains why and how athletes have so much paperwork on April 15.


Tom Brady has to file taxes in 9 different states this year | For The Win

[Barry-xlovecam]

Part of the year their income was EARNED in that state so it is taxable in that state.

Not a jock tax really. If I work 5 months in New York State and I work 5 months in Massachusetts I get 2 months vacation and owe both states income tax on my earning in their states.

I just don't make $100K a game and cry a lot ...

[blackmonsters]

Originally Posted by Barry-xlovecam

Part of the year their income was EARNED in that state so it is taxable in that state.

Not a jock tax really. If I work 5 months in New York State and I work 5 months in Massachusetts I get 2 months vacation and owe both states income tax on my earning in their states.

I just don't make $100K a game and cry a lot ...

It's just a story about taxes so why express your bitter side about being out done in life?

[Barry-xlovecam]

Can you imagine the grief of filing sales tax reports in numerous states monthly/quarterly for an internet retailer?

[WarChild]

Originally Posted by Barry-xlovecam

Part of the year their income was EARNED in that state so it is taxable in that state.

Not a jock tax really. If I work 5 months in New York State and I work 5 months in Massachusetts I get 2 months vacation and owe both states income tax on my earning in their states.

I just don't make $100K a game and cry a lot ...

Terrible example. A better example would be if you worked in New York but also had to file tax returns in California, Nevada and Oregon because you want to one day business meetings in the other states.

I think it's fair to call it a "Jock Tax" when it was started by California specifically for athletes.

[L-Pink]

Haha, years ago Troy Aikman joked that in a Giants game he was sacked three times intercepted twice had a rib injury and had to pay New Jersey thousands of dollars.

[Barry-xlovecam]

Originally Posted by WarChild

Terrible example. A better example would be if you worked in New York but also had to file tax returns in California, Nevada and Oregon because you want to one day business meetings in the other states.

I think it's fair to call it a "Jock Tax" when it was started by California specifically for athletes.

Most states have a personal exemption. If your income for those few days is less than that technically you would incur no liability. If you make more than that for the time ($5K to 10K? varies by state) you would be liable for income tax reporting and paying if due.

It costs money when you make money what's worse is all the expense accounting you would need to do to reduce your liability. That can be a lot of BS trying to write off your bar tab. Coke dealers don't give receipts or take cards bwahahaha

[blackmonsters]

Originally Posted by Barry-xlovecam

Most states have a personal exemption. If your income for those few days is less than that technically you would incur no liability. If you make more than that for the time ($5K to 10K? varies by state) you would be liable for income tax reporting and paying if due.

It costs money when you make money what's worse is all the expense accounting you would need to do to reduce your liability. That can be a lot of BS trying to write off your bar tab. Coke dealers don't give receipts or take cards bwahahaha

It just seems crappy to invite performers from out of state into a state to make money for that state and then charge them for showing up.

I mean, didn't the state tax the tickets sales and the hotel sales and the restaurant sales and the concession sales and the gas/airport sales and the sales sales sales sales???

?

[Barry-xlovecam]

Originally Posted by blackmonsters

It just seems crappy to invite performers from out of state into a state to make money for that state and then charge them for showing up.

I mean, didn't the state tax the tickets sales and the hotel sales and the restaurant sales and the concession sales and the gas/airport sales and the sales sales sales sales???

?

https://turbotax.intuit.com/tax-tool.../INF12055.html
How do I know how much I owe in each state?
Residents pay tax on all of the income (from all sources) they received during the calendar year. Residents get a tax credit for taxes paid to any other states.

Example: A California resident receives $20,000 from a rental building in Arkansas. The resident reports only the $20,000 to Arkansas and pays $2,000 in tax to Arkansas. Since the person is a California resident, California also taxes the $20,000, but gives a $2,000 tax credit for the tax you paid to Arkansas.

Part-year residents follow each state's rules. Some states separate the income, and tax only their state's income. Or a state may calculate the tax on all income as if you were a resident, and then allocate the tax based on "in state sources/all sources."

It's BS paperwork so accountants, tax software producers and government clerks have jobs -- that is the real cost. In the end it favors the state with the higher tax rate. In the above example if tax rate is higher you have to prorate your exemption, scratch that -- it's a 50 state cluster fuck! ^ i was wrong in the above post ? Assuming that pro ration is uniform between all 50 states?

Part-Year Residents and Military

If you are a part-year resident or a member of the military, you must prorate your exemptions based on the percentage of your income subject to Maryland tax. See Instructions 26 and 29 in the Maryland tax booklet.

2/365 of 10,000 with the higher state's rate owed e.g.; Arkansas 10% and California 12% (in the payer's tax bracket) then California would gain 2% on the overage of the prorate state exemption for that tax payer's filing status in the 'wash out'. WTF -- See why this provides employment for accountants and others living off this system. You can deduct your accounting costs off your gross income so it only costs you 60% to (85% if you are a working stiff).

I feel sorry for the dope that gets stiffed for the accounting costs and the $200. The guy making $500K or $millions gross just signs the check and carries on.