Here’s What It’s Like To Be Taxed As An NFL Player
Happy Tax Day everybody! Today's the tax deadline for many of us and while relaxing because I filed over a month ago, I know many people will fight with anxiety today as they fumble through last minute filings and super long lines at the post office. Thanks to Sports Illustrated I found out the NFL athlete may dread tax day far more than you do.
More and more we here free agents decisions on which team to play for is influenced by the team's home state income taxes. Athlete select a state with a low or even no income tax in an attempt to save as much as they can of their gigantic contracts. Here's the thing, that's only part of the equation. Each player not only pays taxes on their home state but also wherever they play or even practice. Per Sports Illustrated when the Dallas Cowboys decided to hold training camp in Oxnard, California it cost former Cowboys Wide Receiver about $10,000 a day.
The formula is simple: total salary multiplied by days spent in a given state multiplied by that state’s income tax rate, all divided by the number of days in the season. So each for each day Bryant spent in California he owed the state ($13,000,000 x 1 day x 13.3% tax rate / 170-day season).
To be honest that's nothing compared to what Brock Osweiler went through in 2017. Per Sports Illustrated CPA's weren't even exactly sure how to file for Osweiler. It all depends on his schedule moving forward, was there weekly payments or a lump sum and more questions addressed in the SI article.
So even though I'd love to have the problem of hiring a CPA to handle my millions, I will kick back and relax knowing my accountant already handled my taxes. Today will be far calmer for me than any athlete that needs a formula to decide which state get's which chunk of their salary.