What is the Jock Tax?
Wednesday, February 3, 2016
The “jock tax” is a tax that targets athletes and entertainers visiting a city or state in order to make money. Most often hit by the tax are professional athletes who travel across the country to play with their teams. The jock tax demands that these individuals pay income taxes in every state where they play, and the amount can quickly ramp up. It’s worth noting that individuals subject to this tax have to file separate returns for each state, making their taxes an unwieldy and confusing process.
There has been quite a bit of criticism leveled at the jock tax in recent years. The fact that it seems to be fairly arbitrarily enforced, with wealthy professional athletes (“jocks”) often targeted, is a bone of contention among various analysts.
Bottomline, professional athletes and even up-and-coming entertainers traveling to different venues and getting paid for shows need to have a tax professional that knows what they’re doing.
photo credit: efile.com