NBA Stars Losing Hefty Amounts of Their Salary to the Taxman
Just about everyone knows that professional athletes make a ton of money. Whether you agree with athlete salaries or not, the fact is those hefty numbers you always see reported when an athlete signs a new deal aren’t really all that they’re cut out to be. Oh sure, they are making a lot of money, but they are also paying quite a large tax bill. In some cases, that bill can put a huge dent in their actual earnings.
According to a new report, when determining whom the highest paid NBA player is, it depends on which numbers you use. Kobe Bryant earns more than any other NBA player, coming in with a salary of $23 million this year. However, if you look at his tax bill, which is estimated at $11.4 million, then his actual take home pay is only $12.1 million. That means he is paying close to half of his salary to the taxman.
Several factors played a role in determining these tax numbers, including where a player lives, and where he plays both his home and road games. Road games play a big role in the equation because some cities enforce the so-called “jock-tax” on individuals who come to the area to work. Pro athletes schedules are easy to track, so these cities can easily implement this tax.
There’s no question that NBA players are well compensated for their services, but remember, most players are giving a huge percentage of their income back in taxes, thus reducing how much they actually take home by a large portion. Of course, these tax numbers are an estimate and there are certain measures these players can take to help reduce their tax bill. So they might be able to take more home than estimated.
Likewise, if you need help finding the all of the best ways to save on your tax bill, then contact. GROCO today.
10 Things Every Taxpayer Needs to Know About the Pension Law
10 Things Every Taxpayer Needs to Know About the Pension Law The Pension Protection Act, signed into law on August 17, 2006, is designed to address the nation-wide problem of under-funded pension plans. The law penalizes noncompliant companies and encourages employee contributions, but many of the changes directly impact taxpayers of all ages, regardless of…
Planning for Retirement
Planning for Retirement Unfortunately, Social Security’s assets are being rapidly consumed and the number of workers supporting it is shrinking. For us, this means we will have to rely heavily on our personal savings when the time for retirement finally comes. While there are a number of options to help each of us create a…
Ten Tax Tips for Individuals Selling Their Home
Ten Tax Tips for Individuals Selling Their Home The Internal Revenue Service has some important information for those who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may be able to exclude all or part of that gain from your income.…
Multitasking – Productivity Killer Or Time Saver?
Multitasking – Productivity Killer Or Time Saver? Multitasking can simply be defined as the ability to do more than one thing at a time. I often ask at my workshop if anyone in attendance prides themselves in being a great multitasker. This question is usually met with a few enthusiastic hands up. To be truthful,…