How Easy is it for Wealthy MLBers to Avoid State Income Tax?

HOW EASY IS IT FOR WEALTHY MLBERS TO AVOID STATE INCOME TAX?

How Easy is it for Wealthy MLBers to Avoid State Income Tax?

Spring is here and that means a lot of things to a lot of people. For many, spring means baseball is back, from Little League to the Majors, ball players are back on the diamond hitting homers, striking people out and stealing bases. For Major Leaguers, it also means another year of hefty incomes. That’s because Major League Baseball players are among some of the wealthiest athletes in the world, thanks to huge contracts that come with mostly guaranteed money. Baseball is also a game of numbers and statistics. Fans and players alike follow players’ statics closely. However, while many players claim they don’t worry about their numbers as long as their team wins, there is one number almost all of them pay attention to: their bottom line.

Sunny Weather Tax Havens

In other words, baseball players are no different than people from any other profession; they care about their paycheck and how much of that paycheck is going to the IRS. The good news for wealthiest baseball players is that protecting their income from state taxes is easier in their sport than it is in any other professional league. First off, players begin their fiscal year in Spring Training, which takes place in either Arizona or Florida. Arizona doesn’t start charging players on their income until the regular season starts and Florida never does because there is no how to avoid state income tax
in Florida. Any player who lives in a tax-free state will automatically protect 20 percent of his income from taxes.

Spring Training Is Over

So now that Spring Training is over and the numbers actually count on the field and in the win and loss columns, where does that leave the tax numbers? The regular season also makes it easier for mlb player taxes to protect their income from taxes, because they can claim residency in tax-free states easier than athletes in any other professional sports. The reason for this is that in order for a state to claim someone as a resident that person has to reside there for at least 183 days throughout the year. With their 162-game schedule, including many road trips to states all over the country, it is very easy for a Major League Baseball player to avoid being claimed by most states.

It’s About Where You Live

Perhaps one of the best examples of this is the highest paid player in the game, Clayton Kershaw, who pitches for the Los Angeles Dodgers, but claims residency in Texas. Of course, Kershaw will be responsible for all the money he earns when his team plays in avoiding california residency. However, because he lives in Texas, Kershaw will actually be able to avoid paying state taxes on many of his workdays, including all of Spring Training, off days and games that are played in tax free states, like Texas. With his salary at roughly $30 million a year, that’s a savings of almost $3 million annually because he lives in Texas instead of California.

Swing For The Fences

So baseball is back and for those who love numbers baseball is a dream come true. Meanwhile, for those how do mlb players get taxed who like to see bigger numbers in their bank accounts and smaller numbers on their tax bill, the news is also good, as long as they claim residency in a state with no income tax. They can swing for the fences far, far away just as long as their money is protected in a state with no taxes no matter where they play away.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in
Unveiling Entrepreneurial Success with Randi Brill

Unveiling Entrepreneurial Success with Randi Brill

Randi Brill, best-selling author and CCO of Just Call Randi Design Agency discusses unveiling entrepreneurial success on Alan Olsen‘s American Dreams Show. Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Randy brill. Ready welcome to today’s show.   Randi Brill Thank you, Alan. I’m glad to be here.  …

Legacy Builders Philanthropic Revolution

Legacy Builders Philanthropic Revolution

Legacy Builders Conference Inspires Philanthropic Revolution The recent “Legacy Builders” event has sparked a philanthropic revolution, inspiring attendees to leverage their accumulated wealth for world betterment. The event, held on May 15, 2024, in San Jose, CA, featured distinguished speakers including NFL legend and HGGC Partner Steve Young¹, retired three-star General Michael Barbero², and Becky…

Transform Your Life Every Morning, Hal Elrod

Transform Your Life Every Morning, Hal Elrod

Hal Elrod, an international keynote speaker and best selling author of 12 books, including “The Miracle Morning“—which has been translated into 42 languages discusses how to transform your life a little every morning on Alan Olsen‘s American Dreams Show.   Transcript:   Alan Olsen Welcome to American Dreams. My guest today is Hal Elrod. Hal welcome to today’s show.  …

Rob Ryan’s Amazing Movie Premiere June 28th on How He Saved the Internet

The Hollywood movie premiere of the Rob Ryan story is a cinematic tribute to innovation.  This remarkable film documents the real-life journey of this visionary from crisis to triumph and how he saved the internet!  On June 28th at 9:30 PM in the iconic TCL Chinese Theatre.  For tickets, click here.   Rob Ryan, Founder…