Thread: Philly's taxes

He's a golfer. Hardly an athlete. Plus anyone that belly putts deserves a higher tax bracket.

Originally Posted by Glitch

I get ticked when people talk about these things but fail to talk about everything.

How Getting A Raise Affects Your Taxes



Meaning he only pays that top rate on the amount over $1mil. HOWEVER

The taxing life of a pro athlete - Los Angeles Times

You actaully pay taxes where you earn them. So winnings from a Tourney in Florida are paid at Florida tax rates. Earning from a commercial filmed in Canada are taxed at Canadian rates. (although there is some federal taxes still due)

The point being that he most likely didn't earn all he 47.8 mil in Cali and therefore doesn't owe their tax rate on 46.8 mil of it.

Even if you assumed he DID make it all in Cali. The difference (if he were to earn the same in 2013 that he did in 2012) and only figuring the top bracket

46.8m * 10.3% = $4,820,400
46.8m * 13.3% = $6,224,400

The change for him is $1,404,000, again assuming he made every penny in the state of Cali.

The federal $ he is going to have to pay no matter what state he lives in so nothing to be said about that.

Of course if he moves to a state with no state income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming) he would say a ton of $ on income tax but may pay more else where.

Not so sure about that. His address is in California and that will be where he pays taxes. This isn't a Regular payroll check and yes it does make a difference. When I was on a tavel crew we payed Alabama taxes even though we was in different states working.

No it is not. Some states do not require it. Most do.

Read the 2nd link about pro sports athletes and the headache it creates for them.

You are wrong (at least for Athletes) You can stick your head in the sand and scream "nu-uh" all you want. That doesn't make you right.

Taxes: Cost Of Being A Professional Athlete | Bankrate.com

Professional sports players get taxed by pretty much every city and state in which they play, says Ryan Losi, CPA and executive vice president of Piascik & Associates, a Glen Allen, Va., accounting firm that represents more than 70 professional athletes.

"An Empirical Look at State Income: Taxation of Major League Baseball Players" by Aiuppa, Tom; Haupert, Mike; Sherony, Keith - Nine, Vol. 12, Issue 1, Fall 2003 | Questia, Your Online Research Library

The large increases in athletes' salaries have prompted states to exercise their rights to tax nonresident professional ballplayers. The general trend has been for each state to levy its tax rate on part of the salary of each player for games played within the state. The result is a complex system with extra burdens for players, owners, and states. In response some of the constituencies and the Federation of Tax Administrators have proposed that all states adopt the same methodology for taxation. This paper summarizes the evolution of the system where states tax nonresident athletes. It also presents the impacts of some of the proposed tax polices and provides insight as to the direction of future tax policy.

"Of NBA players and their tax burden" from Real Life Debt: The Personal Finance Blog

There is no double tax. The players (employees) are taxed for the time doing their job in a particular state. That's pretty much the rule for everyone that receives earned income from an employer. Say you are an employee for IBM and you're assigned to work in two different states. You would be taxed on your earnings for each state. If those assignments are temporary, generally the non-resident state will not require you to pay tax and all income ends up being taxed in your home state.

Players will receive a credit on the home state tax return if and when they pay taxes to another state. So generally, the tax paid to other states offsets the tax players would have to pay their home state. I say generally, because some states like Texas & Florida don't have an income tax.

The taxing life of a pro athlete - Los Angeles Times

If opening day is the best day of the year for professional athletes, then April 15 -- tax day -- is probably the worst. Especially now that 20 of the 24 states with franchises in at least one of the four major pro leagues -- the NFL, NBA, NHL and Major League Baseball -- have laws that require visiting athletes to pay state income tax for each game they play there.

Originally Posted by deathgodusmc

I dont need to read your link. Up to last year i worked out of state all the time. You file taxes for your home state not the state your working in. Which is one reason i choose florida as a home state (no state income tax). Doing something other then that can get you into trouble unless you establish a residence in that state. Its not hard to establish multiple residencies and there are specific laws for just those occasions. Pro sports athletes would or can easily fall into that catagory. As for lotto winning i have no idea because technically its not an earned income its an income from gambling and taxed accordingly.

You are wrong here.

You file taxes in whatever state the income is earned. From the accounting standpoint GA company puts you in their AP system as a 1099 or in their payroll system as an EMP status. Either way, the income is reported from the GA company to the state and your paid income is represented in the state that the work was performed and if you're not claiming the work you did in that state you are guilty of tax fraud.

If you do work in GA or many of the other states, you need to file income tax for GA regardless of which state you live in.

If you haven't filed for the work you have done in other states it's only a matter of time before the IRS catches up to you.

When I worked in Illinois I had to pay state income tax in Illinois on the money earned there, same for Kansas. The rest of the debate I could care less about.