Discussion:Work 1 day in another state?
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Discussion Forum Index --> Basic Tax Questions --> Work 1 day in another state?
Discussion Forum Index --> Tax Questions --> Work 1 day in another state?
| 10 April 2008 | |
| My client plays football in NFL and I have yet to see his w2's so without seeing if they have withheld state taxes in the 10 other states he played in this year, would anyone know if his one day of playing in these other states requires a tax return in those states. I contacted 6 of the other states yesterday but the representatives seemed to be clueless. | |
| 10 April 2008 | |
| Generally, yes they do require a state return for professional athletes. | |
Death&Taxes (talk|edits) said: | 10 April 2008 |
| And if all the States are in one block of his W-2, you will not be able to efile the return. | |
| 10 April 2008 | |
| He needs to file an extension so I have time but say he played in 10 states (besides FL and TX) he will have to file state taxes in each state. This will be a fun one. Thanks for the advice D&T. If anyone has another hints let me know. I have done employees with 3 states but never 10! | |
| 10 April 2008 | |
| Professional athletes are required to pay city taxes as well. | |
Southparkcpa (talk|edits) said: | 10 April 2008 |
| When you see his W2, it will become pretty clear. In fact, the return is not that difficult from the multi state stand point. He will/should have a W2 for each state played. | |
| 10 April 2008 | |
| That is what I am hoping Southpark! I feel confident that this is in my ballpark. I am just trying to prep myself for when I see these w2s. | |
Wkstaxprep (talk|edits) said: | 10 April 2008 |
| i would say most definitely it requires a tax return!
he may play there one day, but the team usually arrives atleast a day or two before game day, and 3 days in that state based on the huge salaries these nfl players get i would sure think it meets the filing requirement of each state. just my opinion off the top of my head. Will | |
Death&Taxes (talk|edits) said: | 10 April 2008 |
| The employer usually does the allocating, and you start with the assumption that they are correct. What I have seen in some cases is really funny: of my four multi-state employers, none have listed New York and that must be done on basis of time. Then again one man works in NY and for years, his employer would not show Massachusetts even though they played there 10-13 dates a year.
Damn returns look like books....maybe a ream of paper. | |
| 10 April 2008 | |
| Most states use a "duty days" formula to calculate the percentage of income that is sourced in the state for pro athletes. The denominator is the total number of days from the start of practice to the last game of the season, and the numerator is the days (or partial days) in that period spent in the state. Sometimes it is a good idea to double check the reasonableness of the employer's allocations. I have a client (a baseball player) who owed significant additional tax to California because the employer assigned way too much income to New York, where his team was based. California will give him credit only for the tax on the income allocated to NY by the duty days formula, which is considerably less than what the employer attributed. The preparer of the return just used the W-2 numbers without question. | |
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