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Josh Pate Bringing Some Knowledge Regarding NIL and College Football
Posted on 2/26/24 at 10:13 am
Posted on 2/26/24 at 10:13 am
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Posted on 2/26/24 at 10:19 am to Smokeys Howl
The best part is at the end, where he touches on state taxes.
Some good shlt right there.
Some good shlt right there.
Posted on 2/26/24 at 10:25 am to Smokeys Howl
quote:
state taxes
Alabama has a state tax, and I’m still not sure what it’s used for except for lining the pockets of people in Montgomery.
Posted on 2/26/24 at 1:26 pm to Hot_in_the_box
Yeah but his point was different.
Posted on 2/26/24 at 2:25 pm to Hot_in_the_box
The problem is most students do not file taxes in the state they go to school in but list the state where they are from as the state they reside in. Even with that said state taxes would still be very little because the jock tax would apply first. So if NIL/contracts were to happen as employee would pay the tax would be divided by the number of games a athlete would play not where they reside. Starting next year a player if their team won the NC could play up to 17 games. So their earnings would basically be taxed on 17 games and the rate would be set in each state they play.
Someone might convince a HS player there is some huge advantage but in reality the state tax portion of it will very little in regards to where someone resides. If so it would also benefit any kid living in a state like TN if they go out of state they could still reside in TN while going to college elsewhere and not pay a state tax outside of the jock tax. So the advantage could go both ways.
Someone might convince a HS player there is some huge advantage but in reality the state tax portion of it will very little in regards to where someone resides. If so it would also benefit any kid living in a state like TN if they go out of state they could still reside in TN while going to college elsewhere and not pay a state tax outside of the jock tax. So the advantage could go both ways.
This post was edited on 2/26/24 at 2:27 pm
Posted on 2/26/24 at 2:26 pm to Smokeys Howl
The SEC's league office can't even come up with a consensus re a drug violation policy. No way it will be able to get this new League to agree on something as complex as muti state NIL laws. Throw in the multi state collection of plaintiff attys just drooling at the prospect of more lawsuits, with little risk & potential huge rewards.
Posted on 2/26/24 at 3:22 pm to TideWarrior
You know, I have been with the military since 1981. For 21 straight years I was a TN resident. I never paid taxes in IL, SC, NC, TX, FL, or any overseas benefits.
UNTIL...
I retired in SC. Then the shite hit the fan. I paid over $2,000 to register my cars and RV in that GOD Blessed state because I became an employee on the base.
If an athlete becomes an employee of a university or state, they become a LEGAL resident of that state. JOK tax will not count. Sure, after the season they can move back to their home state, but they're continued pay will be from the representer.
I don't see how they could divide their income as multiple resident states after the season simply because they move back home. They're still working for the university or they're not getting paid while out of state.
Bottom line: You pay the state tax on your residential income no matter what state you're in, that is unless it is a tax free state like FL, TX, & TN.
UNTIL...
I retired in SC. Then the shite hit the fan. I paid over $2,000 to register my cars and RV in that GOD Blessed state because I became an employee on the base.
If an athlete becomes an employee of a university or state, they become a LEGAL resident of that state. JOK tax will not count. Sure, after the season they can move back to their home state, but they're continued pay will be from the representer.
I don't see how they could divide their income as multiple resident states after the season simply because they move back home. They're still working for the university or they're not getting paid while out of state.
Bottom line: You pay the state tax on your residential income no matter what state you're in, that is unless it is a tax free state like FL, TX, & TN.
This post was edited on 2/26/24 at 3:25 pm
Posted on 2/26/24 at 3:24 pm to TideWarrior
quote:
The problem is most students do not file taxes in the state they go to school in
This is about them being employees.
So yes, in this case they'll have to.
Posted on 2/26/24 at 3:38 pm to TideWarrior
quote:
Someone might convince a HS player there is some huge advantage but in reality the state tax portion of it will very little in regards to where someone resides. If so it would also benefit any kid living in a state like TN if they go out of state they could still reside in TN while going to college elsewhere and not pay a state tax outside of the jock tax. So the advantage could go both ways.
If the kid is listed as a dependent by his parents then the tax is paid where they are listed as dependents.
Posted on 2/26/24 at 3:53 pm to JLFVFFL
There is an income tax in Tennessee but I wouldn't expect many Tennessee fans to realize it and it most likely wouldn't apply to any athletes though if they are smart it would. It was 4% on dividend income once it is over a certain amount, maybe $2,000 or something like that (or at it was when I was still living there but I've been gone for nearly 20 years).
Posted on 2/26/24 at 4:02 pm to TideWarrior
So let’s say a kid gets $500,000 for the year, that covers “17 games”. In places like Alabama they have a state tax and a local tax. Like for Gadsden Al for example, the local and state tax combine for like 10%.
500,000/17 games = $29,412 roughly a game. Now let’s tax that $29,412 by 10%, then it comes out to roughly $2941 dollars. While it don’t seem much, some kids will not want the hassle of dealing with filing a state and local tax.
500,000/17 games = $29,412 roughly a game. Now let’s tax that $29,412 by 10%, then it comes out to roughly $2941 dollars. While it don’t seem much, some kids will not want the hassle of dealing with filing a state and local tax.
Posted on 2/26/24 at 4:15 pm to JLFVFFL
quote:
JOK tax will not count.
Incorrect
I said the state tax means very little due to jock tax being applied. Jock tax has nothing to do with the state you reside in but where you play the games.
quote:
In the United States, the jock tax is the colloquially named income tax levied against visitors to a city or state who earn money in that jurisdiction.
quote:
The jock tax is a tax on income that’s applied to individuals who earn money outside of their home state or city. The idea for the tax dates back to the 1960s but it didn’t begin to pick up steam until the early 1990s. In 1991, the state of California assessed state income taxes against Michael Jordan and his teammates following the Bulls’ championship run against the Lakers in Los Angeles.
quote:
The jock tax requires athletes and other sports professionals to pay income tax in each state where they earn income. Given the nature of travel in sports, that means multiple states may apply jock tax to income earned by the same athlete as they travel around and play games in many different states.
Not all states apply the jock tax and cannot remember who and who does not.
Posted on 2/26/24 at 4:20 pm to Hot_in_the_box
quote:
500,000/17 games = $29,412 roughly a game. Now let’s tax that $29,412 by 10%, then it comes out to roughly $2941 dollars. While it don’t seem much, some kids will not want the hassle of dealing with filing a state and local tax.
As I stated in my earlier post whether a state has a tax or not it will not matter. For those athletes making large amounts off of their NIL someone else will be doing their taxes. The point was is Pate is a fool if he thinks state income tax will help states who do not have it gain a recruiting advantage.
The kids that are making money have agents and/or financial advisors who take care of all this. So yes they will not have to hassle with it.
Posted on 2/26/24 at 4:23 pm to RD Dawg
quote:
If the kid is listed as a dependent by his parents then the tax is paid where they are listed as dependents.
Yes meaning any kid who plays for TN or any state without income tax still would pay for tax in the state they reside in if their parents are claiming them as dependents. Or a kid from TN playing for UGA would not have to pay GA taxes if a dependent claim is filed in TN.
In the end no matter if there is or is not state income tax it will be of very little concern.
Posted on 2/26/24 at 4:27 pm to RD Dawg
quote:
If the kid is listed as a dependent by his parents then the tax is paid where they are listed as dependents.
If a kid making bank on NIL is listed as a dependent by his parents then his parents are going to prison.
Posted on 2/26/24 at 5:08 pm to JLFVFFL
Worked in Alabama for 10 hours and had to file a return. I don’t live there but because the job was in the state, I had to file a return.
Posted on 2/27/24 at 8:18 am to GeauxtigersMs36
Yeah these posters thinking a player will go to Alabama, make a coupla hundred thousand bucks and file in Oregon are out of their skulls.
Posted on 2/27/24 at 8:26 am to Smokeys Howl
I don't know how it works in the private sector, but as a military member, I file state taxes with my permanent home of record - which is the state of Georgia. I have been doing that since I joined back in 2013 despite living in Colorado, Hawaii, and Virginia three to four years at a time.
How would this not be a similar situation?
How would this not be a similar situation?
Posted on 2/27/24 at 8:58 am to TideWarrior
quote:
The problem is most students do not file taxes in the state they go to school in but list the state where they are from as the state they reside in.
There are so many things wrong with what you just wrote.
Jock Tax does not even remotely apply to NIL. The term NIL (Name Image and Likeness) literally has nothing to do with them playing games so NIL has nothing to do with playing games in different states.
Patrick Mahomes does not pay state taxes to California on the State Farm money he makes just because he plays against Chargers. All of that money is taxed in Missouri (or wherever his residency is). He only pays state taxes to California for the money he is paid by the Chiefs to play football (for whatever his game check(s) are for the handful of games he plays in California in a given year).
If these players are considered "employees", the only income that will be taxed in different states will be income that the school (or conference) pays them to play games. Not the completely separate NIL income paid by completely separate entities
Posted on 2/27/24 at 9:03 am to PeleofAnalytics
With some exceptions, you pay state taxes to the state your employer is registered.
I'm not sure why we're complicating it this much.
I'm not sure why we're complicating it this much.
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