Tag Archive for Athletes Rest Days

How Professional Athletes Attribute “Rest Days” for State Income Tax Purposes: A Major Controversy Brews

relax on the beach in hammock

Many young professional athletes and their less than experienced managers are learning for the very first time that the money “earned” PLAYING or competing is subject to income tax both at the federal level AS WELL AS AT THE STATE LEVEL WHERE THEY ARE PERFORMING or rendering service on behalf of their employer.

Basically for example if you earn money in Colorado you pay Colorado income tax as well as federal income tax on those same earnings. Professional athletes compete or perform (aka earn money) in many different states, the majority of which have a state income tax obligation, some higher than others and all pretty nasty.

A few months ago a select group of professional athletes shared concerns about Read more