07-04-2024, 06:06 PM
Jock tax, and CA taxes, is a complex calculation. Lots of the info is already mentioned, but it's way more complexity than that. I suspect a sports agent or the CPA for an agent or team or player might have a program to figure this out, but there are layers to it.
The missing layer in the discussion so far is "where does the player LIVE" - and then how does the state where he lives, as well as the state of the team that pays him, treat that issue.
If I live in CA, and play for a CA team, the tax rule might say that I pay 13.3% on ALL of my income, but then I get a reduction for taxes paid in another state. So when I play in TX or FL, since I pay $0 to those states, I pay the full 13.3% to CA for those games too. And I pay 13.3 on everything when it's all done.
On the reverse end, the Mavs players likely have to pay for the games played in CA, prorated from their total games in that state (or total days of the season).
Some cities also impose a tax.
It changes a bit if I live in another state (say in Texas) as my permanent residence, but am on a work assignment (playing for a team) in CA. In that case, CA would ONLY get to collect on games played in CA.
Very complex to even explain all the issues. Would not invest the massive amount of time to figure it out in a comparative way (presumably create a program with spreadsheets for inputting variables) without being well-paid by a player to do so.
The missing layer in the discussion so far is "where does the player LIVE" - and then how does the state where he lives, as well as the state of the team that pays him, treat that issue.
If I live in CA, and play for a CA team, the tax rule might say that I pay 13.3% on ALL of my income, but then I get a reduction for taxes paid in another state. So when I play in TX or FL, since I pay $0 to those states, I pay the full 13.3% to CA for those games too. And I pay 13.3 on everything when it's all done.
On the reverse end, the Mavs players likely have to pay for the games played in CA, prorated from their total games in that state (or total days of the season).
Some cities also impose a tax.
It changes a bit if I live in another state (say in Texas) as my permanent residence, but am on a work assignment (playing for a team) in CA. In that case, CA would ONLY get to collect on games played in CA.
Very complex to even explain all the issues. Would not invest the massive amount of time to figure it out in a comparative way (presumably create a program with spreadsheets for inputting variables) without being well-paid by a player to do so.