Taxes on Visiting Professional Athletes and Entertainers

Professional athletes must pay taxes in many of the cities and states in which they play road games, which can create a tax preparation nightmare.  Article – Pittsburgh Post-Gazette

…nonresident athlete taxes — seldom collected 20 years ago — are now significant sources of revenue for municipalities and states and can cause serious headaches for entertainers, athletes and accountants at tax time.

Any employee who travels with the team, which includes coaches, broadcasters, equipment managers and scouts, is subject to the same tax requirements.

Of the 24 states that house professional sports teams, 20 collect income tax on their home and visiting teams. And nearly a dozen cities, including Pittsburgh, Philadelphia, Cleveland and Cincinnati, impose “jock taxes” and fees on teams and players to address budget shortfalls and to help pay for arenas and stadiums built with the taxpayers’ wallet.

Athletes, entertainers and support staff receive dozens of W-2s in the mail each year, and the stack of tax returns for dozens of states is as thick as a phone book.

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