NFL and taxes - I never knew this

[\GoBillsInDallas/]

Everyone already knows that NFL players get taxed by different states when they play there. For example, if the Bills play one game in California, then 1/16 of their paycheck is subject to California taxes. What I didn't realize is that EVERYONE who travels with the team - including announcers, trainers, ballboys and everyone in between - is subject to the tax as well. http://www.post-gazette.com/stories/business/news/a-slew-of-taxes-just-part-of-the-ballgame-for-pro-athletes-683449/

[Green Lightning]

The Bills must relish away games.

[Nick the Greek]

Nice to play in Miami.. No state income tax in Florida.

[Dr. Trooth]

That kinda sucks, when you consider they are only in the state for 2 of the seven days of the week, but get taxed on their full paycheck? That's bulls#it and I'd think that could be challenged.

[JPS]

Really? I thought taxes were determined by where you are domiciled. So, say, Jason Mraz puts on 50 different shows in 50 different states and has to fill out 50 different tax forms?? I F'n hate our tax system. I can't understand it....and I studied it!!

[KeisterHollow]

If this is so, then I'd think this would be a good way to equalize, or neutralize, the benefits for players going to certain teams in certain states. I mean, it sort of levels the playing field, if this is true - although not completely, it helps. I'd be all for this system if I were the NFL.

[ICanSleepWhenI'mDead]

. . . For example, if the Bills play one game in California, then 1/16 of their paycheck is subject to California taxes. . .

Typically less than 1/16.

 

From the article you posted:

 

The method to figure out who owes what differs in each state and municipality. While the majority of cities and states use "duty days," a measure of the total days worked in a season, as a method for determining a person's tax liability, some use game days.

 

From Forbes:

 

http://www.forbes.com/sites/anthonynitti/2013/02/04/congratulations-to-the-baltimore-ravens-now-pay-your-louisiana-tax-bill/

 

Duty days include all days from the beginning of the team’s official pre-season training through the last game in which the team competes. Duty days also include days the individual is required to perform services, but which fall outside this period, such as instructional leagues, the ”Pro Bowl” or promotional events. In addition, duty days includes days during the off-season when a team member undertakes training activities as part of a team-imposed program, but only if conducted at the facilities of the team.

 

* * * * * * * * * * *

To illustrate the application of these rules, for members of the Ravens and 49ers there were approximately 200 duty days during the 2012-2013 NFL season. The Ravens arrived in Louisiana on Monday morning, but because they didn’t practice until Tuesday, team members should only be allocating six duty days to the state.

 

The 49ers, on the other hand, arrived in New Orleans on Sunday, meaning the 49ers will be allocating seven duty days to Louisiana for their Super Bowl trip. In addition, because San Francisco is slated to return to New Orleans to play the Saints during the 2013 season, team members will be adding another 3-4 days to their total duty days allocated to Louisiana.

 

So if you’re Ravens wide receiver Anquan Boldin – and if you are, congratulations—of the $6,000,000 in salary you will earn in 2013, you must allocate $180,00 ($6,000,000 *6/200) to Louisiana, where it will be subject to a maximum tax rate of 6%.

 

When the Bills play a regular season game in CA, they typically don't spend six days in the state like they might for a CA Super Bowl game.

 

And from the LA Times:

 

http://articles.latimes.com/2009/apr/12/sports/sp-jock-tax12

 

Then there are the tax credits players receive if they're required to pay taxes to two or more states for the same game -- for example: their state of residence, the state where their team is based and the state where the game was played. "In many cases it's a wash. You don't end up paying all that much more," says William Ahern, communications director for the Tax Foundation. "But you just file a lot more paperwork."

 

NFL players who establish permanent residency in a no-income tax state like Texas or Florida can arrange their affairs so that the up-front bonus in their contracts (a significant part of their pay that is not included in each game day check) doesn't get hit by any state income taxes. As a practical matter the little guys you mention don't have that option, although if they are year-round employees maybe the percentage hit is less for them because they might have a higher number of total "duty days" than the athletes.

[San Jose Bills Fan]

That kinda sucks, when you consider they are only in the state for 2 of the seven days of the week, but get taxed on their full paycheck? That's bulls#it and I'd think that could be challenged.

 

It would suck depending on what team you played with.

 

Bills players get to be taxed at a lower rate for their 8 away games than for their 8 home games so they actually benefit.

 

The state of Washington has no state income tax so Seattle Seahawks players comparatively get screwed for their away games.

[Quester74]

So, the perfect NFL schedule would have you playing for say.. the Buccs, and you'd have away games in Miami, Jacksonville, Seattle, Dallas, Houston, Tennessee, Chicago and either Pittsburgh or Philadelphia?

[billsfan89]

That kinda sucks, when you consider they are only in the state for 2 of the seven days of the week, but get taxed on their full paycheck? That's bulls#it and I'd think that could be challenged.

 

I think the players who get paid by game would have their whole pay check taxed. However if you are hourly or salary its only the hours you work in that state. A lot of people in my company deal with this and they say that very few people are impacted by this because if your company designates your pay a certain way then it won't impact you all that much if at all.

 

Its really the state were you live and were your company is headquartered.

Edited April 14, 2013 by billsfan89

[Mr. WEO]

It would suck depending on what team you played with.

 

Bills players get to be taxed at a lower rate for their 8 away games than for their 8 home games so they actually benefit.

 

The state of Washington has no state income tax so Seattle Seahawks players comparatively get screwed for their away games.

 

Actually, compared to Seahawks players, all players whose teams are in income tax states are getting screwed. Seattle players will only have, at most, half of their games taxed. In fact, last year, Seahawks players only paid state taxes on 6 regular season games. Not screwed at all.

[drinkTHEkoolaid]

I vaguely remember from work that we don't travel to California for more than 4 days or we can be subject to their state income tax as well....hmmm

[Buffalo Barbarian]

Everyone already knows that NFL players get taxed by different states when they play there. For example, if the Bills play one game in California, then 1/16 of their paycheck is subject to California taxes. What I didn't realize is that EVERYONE who travels with the team - including announcers, trainers, ballboys and everyone in between - is subject to the tax as well. http://www.post-gaze...thletes-683449/

 

Typical government greed.

[Kellyto83TD]

Everyone already knows that NFL players get taxed by different states when they play there. For example, if the Bills play one game in California, then 1/16 of their paycheck is subject to California taxes. What I didn't realize is that EVERYONE who travels with the team - including announcers, trainers, ballboys and everyone in between - is subject to the tax as well. http://www.post-gaze...thletes-683449/

 

That sucks. But I gotta think playing at the Ralph costs players a ton as well.

 

When I had a friend playing for the Bills he said he could count on paying in 50% in taxes and I could never figure out why with the tax breaks for higher incomes, but now that makes sense with all the variable state taxes taken out

 

Typical government greed.

 

I like your draft in the sig line, but I would still like to see Nassib in there somethow

[San Jose Bills Fan]

Actually, compared to Seahawks players, all players whose teams are in income tax states are getting screwed. Seattle players will only have, at most, half of their games taxed. In fact, last year, Seahawks players only paid state taxes on 6 regular season games. Not screwed at all.

 

My point was teams getting screwed relative to their home games.

 

The Seahawks don't get taxed at home but get taxed on the road. In that sense they get screwed on the road.

 

The Bills get taxed less on the road than they do at home so they benefit from road games.

 

Obviously based on state income tax, as an NFL player you'd rather play for Seattle (or Dallas, etc) than you would for Buffalo.

[jaybee]

So maybe H&R Block has an opportunity here? Represent players ? As an agent? I'm guessing the tax treatment on ANY NFL player has ZERO impact on their decision of where to sign.

[boyst]

Could this be an added reason why we stayed in AZ a few years ago whilst traveling on the left coast?

[San Jose Bills Fan]

We did that this year with SF and ARZ.

 

Could be but maybe not the only reason to stay out west.

 

Business trips like that are purportedly good for team building and it also gives the players a nice climatological break.

[Max997]

You get taxed based on what state you perform your work in

[NoSaint]

So maybe H&R Block has an opportunity here? Represent players ? As an agent? I'm guessing the tax treatment on ANY NFL player has ZERO impact on their decision of where to sign.

 

Two identical offers can have a gap of a few percentage points.... I doubt it decides anything but I'm sure "I take more home with...." Isn't totally absent from the pro/con discussion