Gotta be honest with athletes, state and local tax (SALT), is complex and can be a serious problem if you\u2019re not paying attention.
The state also wants their cut. Most states impose their own state tax. The tax rates vary with 13.3% 11% and 10.9% being the highest.
Things to be aware of:
Athletes Residency – where you deem your residency matters. You\u2019ll be surprised how residency is defined state by state. It\u2019s best to assume your residency status is based on the state you grew up in (i.e., where your Mama lives).
Non-income Tax – this would include this like: Texas Franchise Tax, California\u2019s LLC Tax, Sales and Use Tax, Etc. This is an area where experience tax advisors really shine. This is an unexpected area where small businesses get hit hard. Remember if you\u2019re making NIL money then you are a business. This area of tax won\u2019t impact many athletes too much, but it shouldn\u2019t be completely ignored.
Multi-state Taxation – depending on where you earned that income you might owe taxes in multiple states. Athletes, you should be filing a tax return in the state you have residency and in each state where income has been earned. Now there are exceptions and thresholds but you should consult a tax advisor and keep track of everything.
Local Taxes – cities and counties tax too! New York City, San Francisco, DC, to name few.
If you are earning NIL money, there is a chance you should be paying taxes in multiple states. I\u2019ll say it again, it\u2019s a complex area. Consult with an attorney or a tax advisor (I am a tax advisor). If you\u2019re an athlete and need tax advice my inbox is always open.<\/p>","protected":false},"excerpt":{"rendered":"
Gotta be honest with athletes, state and local tax (SALT), is complex and can be a serious problem if you\u2019re not paying attention. The state also wants their cut. Most states impose their own state tax. The tax rates vary with 13.3% 11% and 10.9% being the highest. Things to be aware of: Athletes Residency […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-265","post","type-post","status-publish","format-standard","hentry","category-nil-tax"],"yoast_head":"\n