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2 Interesting Income Tax Lawsuits - NFL related


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http://www.dispatch.com/content/stories/local/2015/01/10/proathletes-sue-ohio-cleveland-over-taxes.html

 

Summary:

 

Ohio State law allows out-of-state people to work in Ohio for 12 days each year before they are subject to Ohio state income tax.

 

The law excludes entertainers and professional athletes.

 

So, if Buffalo plays in Cleveland, everyone on the team has 1/16 of their income become subject to Ohio taxes. This includes players, coaches, support staff, etc.

 

The City of Cleveland also has a City income tax on visiting teams. This tax applies to everyone on the team, including injured players and practice squad player who didn't even travel to the game.

 

 

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That is absolute bull ****. I pay taxes in CA because I'm a resident of CA. If I spend a couple of weeks in NY working with some clients how can I as a non-resident of NY be expected to pay NY taxes?

You'd have to ask somebody in Albany that Q. HOW they come to the expectation you'd be expected to pay, not sure; THAT they'd expect you to pay is absolutely the case.

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What I've found out that certain states have reciprocal agreements that if you live in one state but work in another your state of residence will credit you the amount of taxes you paid in the state you worked. PA and NY have no such agreement. Interesting.

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That is absolute bull ****. I pay taxes in CA because I'm a resident of CA. If I spend a couple of weeks in NY working with some clients how can I as a non-resident of NY be expected to pay NY taxes?

 

Because you performed the work in NY. I don't agree with it, but that's the logic.

 

We get to hear these sorts of debates down here every few years. People from MD work in VA, people from VA work in MD, everyone works in DC but no one lives there. Usually it's DC trying to levy an income tax on MD and VA residents who work in DC - sometimes they get creative and call it a "commuter tax," in the sense of "you have to pay us to get to your job."

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Because you performed the work in NY. I don't agree with it, but that's the logic.

 

We get to hear these sorts of debates down here every few years. People from MD work in VA, people from VA work in MD, everyone works in DC but no one lives there. Usually it's DC trying to levy an income tax on MD and VA residents who work in DC - sometimes they get creative and call it a "commuter tax," in the sense of "you have to pay us to get to your job."

 

How does NY have any clue I made any kind of money while I was in NY?

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How does NY have any clue I made any kind of money while I was in NY?

One of two ways:

 

1) They pro-rate your income based on the number of days you were in NY. So if you were working in NY for two weeks of the year, they claim about 4-5% of your income as taxable.

 

2) They ask you "How much did you make in NY this year? And please tell the truth."

 

And I can anticipate your question for #1: "How do they know how long you were working in NY?" They ask you "How long were you working in NY this year? And please tell the truth."

 

 

I'm simplifying...but I've had to deal with NY's tax bull ****, and that's a decent overview. They actually tried to get income tax out of me for a couple years after I moved out of Buffalo, down to Virginia...I wouldn't be terribly shocked to find out I'm wanted for tax evasion and insurance fraud in NYS.

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One of two ways:

 

1) They pro-rate your income based on the number of days you were in NY. So if you were working in NY for two weeks of the year, they claim about 4-5% of your income as taxable.

 

2) They ask you "How much did you make in NY this year? And please tell the truth."

 

And I can anticipate your question for #1: "How do they know how long you were working in NY?" They ask you "How long were you working in NY this year? And please tell the truth."

 

 

I'm simplifying...but I've had to deal with NY's tax bull ****, and that's a decent overview. They actually tried to get income tax out of me for a couple years after I moved out of Buffalo, down to Virginia...I wouldn't be terribly shocked to find out I'm wanted for tax evasion and insurance fraud in NYS.

 

I'll stop talking now. Damn glad I didn't renew my licenses in NY.

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I'll stop talking now. Damn glad I didn't renew my licenses in NY.

 

Yup. NY is probably the most aggressive state for collecting income tax on out of state residents. All CT, NJ & PA residents working in NY can attest. Fully taxed in NYS as if a resident. You'd figure they'd allow you to vote in NYS after having the privilege of paying the full NYS tax.

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Yup. NY is probably the most aggressive state for collecting income tax on out of state residents. All CT, NJ & PA residents working in NY can attest. Fully taxed in NYS as if a resident. You'd figure they'd allow you to vote in NYS after having the privilege of paying the full NYS tax.

 

Well they are probably missing out on a lot of tax revue. There should be a better way for them to track income earned from NYS residents from services performed by non-residents. Especially in my industry. Imagine how many out of state advisors work with NYers and make boatloads of money.

 

Whoops...I'll really stop talking now.

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I'll stop talking now. Damn glad I didn't renew my licenses in NY.

That's actually one piece of the logic they used to come after me. "We suspended your NYS license...since you're in our records as having a suspended license, you must be a resident, and owe income tax."

 

"Uh, I moved. I have a Virginia license."

 

"We have no record of that."

 

"I give a !@#$? That's not my problem. Talk to Virginia."

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That's actually one piece of the logic they used to come after me. "We suspended your NYS license...since you're in our records as having a suspended license, you must be a resident, and owe income tax."

 

"Uh, I moved. I have a Virginia license."

 

"We have no record of that."

 

"I give a !@#$? That's not my problem. Talk to Virginia."

 

I'd like to see them come after me for that. I've not been a resident of NY for 32 years and had not been a resident of NY for 23 years when I got my licenses there.

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One of two ways:

 

1) They pro-rate your income based on the number of days you were in NY. So if you were working in NY for two weeks of the year, they claim about 4-5% of your income as taxable.

 

2) They ask you "How much did you make in NY this year? And please tell the truth."

 

And I can anticipate your question for #1: "How do they know how long you were working in NY?" They ask you "How long were you working in NY this year? And please tell the truth."

 

 

I'm simplifying...but I've had to deal with NY's tax bull ****, and that's a decent overview. They actually tried to get income tax out of me for a couple years after I moved out of Buffalo, down to Virginia...I wouldn't be terribly shocked to find out I'm wanted for tax evasion and insurance fraud in NYS.

I've had experience with NYS coming after me after moving as well.

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I've had experience with NYS coming after me after moving as well.

Really, where do you live know if you mind me asking. Did you have "loose ends" in NYS?

 

I was just telling people @ work what a Nazi state New York is when it comes to car insurance. My sister got in a mess years ago letting her car insurance laspe (non-payment). Immediately she was on a suspended license. Of course she gets in an accident! Does about 1,000 bucks in damage... Agrees to pay the guy... Some how the state finds out (did she piss the dude off... She can PO a lot of people)? Now, since the car title in NYS is tied to the VIN she can't do anything with the car, even sell it in state. I think is was something like 18 months? WTF! The car didn't commit the crime. As a good brother I swapped cars with here and mine so that she could then sell for cash. I took her vehicle and registered it in Illinois. I got a slightly better deal, but mine was primo mechanically... Her's needed work (timing belt, brakes, tires, etc...) LoL, figures.

 

Oh... Here in Illinois you can walk out of the dealer with your same car policy, just call your agent in a few days and boom... Covered. No, not in NYS! Gotta have that policy for that specific vehicle out the showroom door. I assume this is still the case?

Edited by ExiledInIllinois
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Really, where do you live know if you mind me asking. Did you have "loose ends" in NYS?

 

I was just telling people @ work what a Nazi state New York is when it comes to car insurance. My sister got in a mess years ago letting her car insurance laspe (non-payment). Immediately she was on a suspended license. Of course she gets in an accident! Does about 1,000 bucks in damage... Agrees to pay the guy... Some how the state finds out (did she piss the dude off... She can PO a lot of people)? Now, since the car title in NYS is tied to the VIN she can't do anything with the car, even sell it in state. I think is was something like 18 months? WTF! The car didn't commit the crime. As a good brother I swapped cars with here and mine so that she could then sell for cash. I took her vehicle and registered it in Illinois. I got a slightly better deal, but mine was primo mechanically... Her's needed work (timing belt, brakes, tires, etc...) LoL, figures.

 

Oh... Here in Illinois you can walk out of the dealer with your same car policy, just call your agent in a few days and boom... Covered. No, not in NYS! Gotta have that policy for that specific vehicle out the showroom door. I assume this is still the case?

The situation was weird. Went through all the hoops when I moved, new license, voter's registration, new permanent address etc. 1 year post-changing residencies, bought some property in NY. NYS sent me a letter one year after that saying I owed them income tax.

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The situation was weird. Went through all the hoops when I moved, new license, voter's registration, new permanent address etc. 1 year post-changing residencies, bought some property in NY. NYS sent me a letter one year after that saying I owed them income tax.

That will teach you a lesson... Don't buy property in the People's Republic of New York! ;-)

 

NY don't play! ;-P

It's something they put in the water... ;-)

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Yup. NY is probably the most aggressive state for collecting income tax on out of state residents. All CT, NJ & PA residents working in NY can attest. Fully taxed in NYS as if a resident. You'd figure they'd allow you to vote in NYS after having the privilege of paying the full NYS tax.

Massachusetts is no slouch either.

 

They've taxed non-residents on the grounds that "they live in Massachusetts 'in spirit'" several years after divesting themselves of all MA properties, and living full-time in Florida in retirement.

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