There’s nothing like the start of baseball season to give grownups a chance to feel like kids again. But for the players? It’s serious business. Another season means staying healthy, negotiating the best possible contract, and keeping on top of their taxes. Yes, taxes. Because if you think...
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If the NIL can be attributed to in state activity then the home state controls. But if it is earned elsewhere, it gets complicated. Look at what MLB players face:
“A baseball player gets a
W-2 for every state where he played during the season, showing taxable income and withholding. Just like any other job.
The jock tax
A baseball player pays income taxes not only in the state where he lives but in every state where he plays. But, since he doesn’t pay taxes twice on the same money, he’ll file a non-resident return for all those states and claim a credit from each state, to reduce the amount he owes to the state where he lives. This so-called “jock tax” has been around since the 1960s and, as you might guess, has never been very popular with players.
No credits
If a player lives in one of the nine states without income taxes (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming), they won’t get a credit for taxes paid to another state”