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Old 09-11-2008, 09:49 PM   #1
steerryGritly

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Nov 2005
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Default Question about players and taxes
If you are a U.S. citizen and you made money outside the US do you pay US taxes...ex - which country gets Vee's taxes. I tend to believe the US but I am not sure. I know we have expats at our country but I can't remember for the life of me which country gets their taxes.
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Old 09-11-2008, 09:59 PM   #2
Spisivavona

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If you are a U.S. citizen and you made money outside the US do you pay US taxes...ex - which country gets Vee's taxes. I tend to believe the US but I am not sure. I know we have expats at our country but I can't remember for the life of me which country gets their taxes.
She pays US taxes. Itīs whatever country the player resides in.

Even when I spent a full year abroad and paid local taxes, I had to file a US tax report and pay part of the difference between the tax percentages.
For expats in the US, they pay US taxes and then have to file a tax report at home (usually), But that's because they reside in the U.S.

Venus' official residence is Florida, so she pays Florida taxes
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Old 09-12-2008, 05:22 AM   #3
fuesquemill

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I've read that local taxes are taken out before the player ever sees the money. If the US tax would be less than what the player has already paid, the IRS doesn't take anything. But if the local tax paid is less than what the player would have paid the US, the IRS still collects the incremental difference.
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Old 09-12-2008, 05:30 AM   #4
Mifsnavassy

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There are so many variations on this. In the States, you have to pay tax in the state where you earn the money and in the state where you have legal residence. In Canada, teams have been exempt from local taxation but individual athletes are not. And on and on and on. Doing an international professional athlete's taxes is an exercise in torture.

To start your head spinning, read the IRS regulation governing athletes and performers.

And aside from winnings, there's that little matter of endorsements...
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