I spent the better part o this Sunday participating in the mid-April classic: tax time. Watching the Twins’ game through my stack of W-2s, 1040s, and M1PRs I wondered if the real reason Joe Mauer was out of the line-up was because he was desperately trying to get his return in on time. This made me wonder- how do baseball players pay state taxes if they spend some much time playing in other states?
As it turns out, baseball players state taxes are exceedingly complicated. Because players earn income based on each game they are scheduled to play, both home and away teams are taxed in the state that the game is played in. This means each player has to file taxes in each state they play in!
Further complicating this tax system is the way in which it is implemented. All of the Twins are taxed in
With all of these complications, I’m fairly certain that TurboTax doesn’t make a professional athlete edition. Fortunately, with an average salary over three million a year, baseball players can afford to hire an accountant. Despite my comparatively minuscule salary, learning about baseball players’ tax time woes makes me appreciate the relative simplicity of my own.
I am not an accountant and I know little to nothing about taxes other than what my tax software tells me- information for this post was gleamed from:
Aiuppa, Haupert and Sheroney, NINE journal, vol. 12. 1. 2003
Hoffman and Hodge, Tax Foundation Special Report, 130, 2004
USA Today Baseball Salaries list- http://asp.usatoday.com/sports/baseball/salaries/