Knowing state tax laws and regulations is essential to saving professional athletes from unnecessary tax burdens. Here is an example to prove our point.
One of our talented young clients signed a lucrative contract with a signing bonus to play professionally in CA after his senior year at the University of Wisconsin.
Unfortunately, California wanted to apportion his signing bonus to the state and tax it at the state’s tax rate of 9.3% that would create a tax liability of more than $25,000!
Fortunately, we have in-depth knowledge of the California Tax Code and the rulings of previous court cases about the tax consequences of signing bonuses…and were able to save our client from having to pay that $25,000 tax burden.
Our expertise in state and federal tax issues specific to professional athletes gives you the peace of mind of knowing you are not being over-taxed on their earnings. So you can be successful on the playing field…and the financial field.