Started By
Message
re: Josh Pate Bringing Some Knowledge Regarding NIL and College Football
Posted on 2/27/24 at 9:09 am to JLFVFFL
Posted on 2/27/24 at 9:09 am to JLFVFFL
quote:
If an athlete becomes an employee of a university or state, they become a LEGAL resident of that state.
That is completely 100% wrong. I literally do a tax return for a professor at Yale (Connecticut) and he is a legal resident of New York because that is where he lives most of the year. He takes a train in to New Haven 2 days a week. In most cases, you are a LEGAL resident of the state you spend 183 days living in. You will file a Nonresident tax return in the state you earn your income in but being an employee will in no way automatically make you a resident of the state that university is in.
0
Posted on 2/27/24 at 9:20 am to jonnyanony
quote:
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.
We are complicating it because it is a very complicated issue for state taxes. Ever look at different state tax laws. They are very different and often contradict each other.
Employers are registered with SOSs in lots of states. In most cases, you are taxed in the location of your performance (home office) so that employer will register in that state if they think the regulatory issues are worth it for that employee. Up until the last decade , this has not been a big issue. Some states have started using the "convenience test" and assigning the state income to the state your "assigned office" location is based on certain criteria. These states do not like having an office in their state but a bunch of the employees move across a state line to do remote work. They want those taxes.
Posted on 2/27/24 at 9:35 am to Hot_in_the_box
quote:
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.
Which is exactly what would happen with lottery/gambling revenues. Not to go off on a tangent, but if they ever want that to pass then, by law, the revenue has to be earmarked for specific things, like education and infrastructure,...not the black hole known as the General Fund.
Posted on 2/27/24 at 4:17 pm to Chad4Bama
Tennessee has no state tax. So we won't have these problems
Posted on 2/28/24 at 9:01 am to Smokeys Howl
quote:
Tennessee has no state tax. So we won't have these problems
Ask people in Tennessee who have a business if they pay no state taxes and they will laugh at you. That really only applies to W-2 or personal investment earnings. If you have an LLC (which any player would be nuts not to form one for his NIL earnings) you are likely filing a Form FAE170 (Franchise/Excise Tax).
Posted on 2/28/24 at 9:12 am to PeleofAnalytics
The tax implications of 190,000 division I student athletes becoming employees of schools overnight would be staggering. Add in title IX and it would be a shite show of epic proportions. But it would be incredible to watch.
Posted on 2/28/24 at 11:52 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.
Most students are claimed by their parents. Otherwise absolutely file in the more advantageous option. If they are supporting themselves (IE NIL money paying the bills they should opt to claim a no state tax option
Posted on 2/28/24 at 11:55 am to Smokeys Howl
No State income tax in Tennessee. lulz
Posted on 2/28/24 at 12:44 pm to Smokeys Howl
It must officially be the off-season
This sports board it talking about taxes
This sports board it talking about taxes
Posted on 2/28/24 at 12:46 pm to IvIerlot
quote:
No State income tax in Tennessee. lulz
Neither does Florida or Texas but it really doesn't matter much because kids who make big dollars will owe federal either way and state taxes are deductible.
It will be a wash for NIL.
Posted on 2/28/24 at 12:48 pm to Smokeys Howl
I've heard this argument for years about the NFL. Free agents still aren't streaming to Florida's NFL teams or the Tennessee Titans. Doesn't seem to mean a thing for the NBA or MLB either.
Posted on 2/28/24 at 12:51 pm to bamameister
quote:
I've heard this argument for years about the NFL. Free agents still aren't streaming to Florida's NFL teams or the Tennessee Titans. Doesn't seem to mean a thing for the NBA or MLB either.
Because these guys are so far outside of standard deduction world that they won't pay state taxes.
Posted on 2/28/24 at 1:01 pm to jonnyanony
quote:
Because these guys are so far outside of standard deduction world that they won't pay state taxes.
And college kids still want to be part of a winner and someone who will get them to the next level. State income tax won't tell that story. Not now, not ever.
This post was edited on 2/28/24 at 1:01 pm
Posted on 2/28/24 at 1:05 pm to bamameister
quote:
And college kids still want to be part of a winner and someone who will get them to the next level. State income tax won't tell that story. Not now, not ever
State income tax is absolutely irrelevant at that tax bracket.
If a California company hands me a $1M check it will 100% not cost me a cent more than if a Florida company did. It will be offset by my federal obligation.
This post was edited on 2/28/24 at 1:08 pm
Posted on 2/28/24 at 1:11 pm to jonnyanony
Based on current GA state tax rate, any player making at least $320K a year will pay the same effective tax rate as any player in FL, TN or TX.
This might be a factor if you're the kind of player who gets, like $100K in NIL, but that isn't a 5* or 4* player so
And at that point you're basically talking $1k - $5k, so that's pretty unlikely to be the deciding factor.
This might be a factor if you're the kind of player who gets, like $100K in NIL, but that isn't a 5* or 4* player so
And at that point you're basically talking $1k - $5k, so that's pretty unlikely to be the deciding factor.This post was edited on 2/28/24 at 1:13 pm
Posted on 2/28/24 at 1:22 pm to jonnyanony
quote:
Neither does Florida or Texas but it really doesn't matter much because kids who make big dollars will owe federal either way and state taxes are deductible.
It will be a wash for NIL.
I super don't even care to be right about this, but your math is so far off, why even go down this road? lol
I still think Tennessee, Florida, and Texas have trolling ammo from this.
Posted on 2/28/24 at 1:24 pm to IvIerlot
quote:
I super don't even care to be right about this, but your math is so far off, why even go down this road? lol
The math is right. For most top tier talent, their federal obligations will far exceed standard deductions and they can itemize state and local income taxes as write offs.
Ask a CPA.
Posted on 2/28/24 at 1:25 pm to IvIerlot
I used GA as an example, so you can verify by sliding the scale until it exceeds standard deduction: LINK
Maybe, but they better hope the kids are dumb enough to not have secured a financial advisor. I personally think most top-flight seniors will already have them, though.
quote:
I still think Tennessee, Florida, and Texas have trolling ammo from this.
Maybe, but they better hope the kids are dumb enough to not have secured a financial advisor. I personally think most top-flight seniors will already have them, though.
Posted on 2/28/24 at 1:32 pm to jonnyanony
Top NIL earners have agents, accountants, advisors, and momma's & daddy's to help them maneuver that $$.
Posted on 2/28/24 at 2:18 pm to Smokeys Howl
Anyone who doesn’t think school offer free tax preparation services, or even paid tax preparation services, to these players are willfully ignorant
Page 2 of 3
Popular
Back to top
Follow SECRant for SEC Football News