Hey, I love Jalen and don't doubt his personal experience, but double taxation from the US and Canada? I've worked overseas myself and now work with immigrants in Canada, many of them on work permits. I have never heard of double income taxes. Maybe there's some extra 3-4% in Ontario/Canada for non-resident athletes? (Louisiana actually does this.)
"While Ontario’s income tax rate is higher than the state income tax rate of any state with an NBA team, Canada’s top federal income tax rate is 29% – considerably less than the top tax bracket in the U.S., which weighs in at 35%. When federal tax rates are included, Toronto’s income tax ranks as the 13th lowest of all NBA cities." - link
"The complicating factor for pro athletes is not how much they earn — though they often make millions of dollars per year — but where they earn it. With few exceptions, athletes owe income taxes in every state where they play.
Red Sox players, for example, will take the field in 14 states and the Canadian province of Ontario this season. Eleven of those jurisdictions tax income earned within their borders. In addition, several cities where the team will play road games — Detroit, Kansas City, Philadelphia, and Cleveland — levy separate* income taxes.
Including his federal obligation and any taxes owed to his home state, a Sox player might expect to pay 17 tax bills." - Boston Globe
"The tax treaty between the United States and Canada preventing double taxation for those who cross the border for work can complicate tax planning for Canadian-based NBA, NHL and MLB players. (There are no NFL teams north of the border.)
This is because Canada's top tax rate of 48 percent is 13 percent higher than the U.S. maximum (35 percent), and Canada taxes individuals based on their residency while the U.S. taxes people based on citizenship.
Get a signing bonus from a Canadian team, which under the treaty is only taxed at 15 percent," he says. "Canada withholds 15 percent, you get a full credit, pay the 20 percent down here, and you're not penalized for playing for a Canadian-based team." - Yahoo Finance
"While Ontario’s income tax rate is higher than the state income tax rate of any state with an NBA team, Canada’s top federal income tax rate is 29% – considerably less than the top tax bracket in the U.S., which weighs in at 35%. When federal tax rates are included, Toronto’s income tax ranks as the 13th lowest of all NBA cities." - link
"The complicating factor for pro athletes is not how much they earn — though they often make millions of dollars per year — but where they earn it. With few exceptions, athletes owe income taxes in every state where they play.
Red Sox players, for example, will take the field in 14 states and the Canadian province of Ontario this season. Eleven of those jurisdictions tax income earned within their borders. In addition, several cities where the team will play road games — Detroit, Kansas City, Philadelphia, and Cleveland — levy separate* income taxes.
Including his federal obligation and any taxes owed to his home state, a Sox player might expect to pay 17 tax bills." - Boston Globe
"The tax treaty between the United States and Canada preventing double taxation for those who cross the border for work can complicate tax planning for Canadian-based NBA, NHL and MLB players. (There are no NFL teams north of the border.)
This is because Canada's top tax rate of 48 percent is 13 percent higher than the U.S. maximum (35 percent), and Canada taxes individuals based on their residency while the U.S. taxes people based on citizenship.
Get a signing bonus from a Canadian team, which under the treaty is only taxed at 15 percent," he says. "Canada withholds 15 percent, you get a full credit, pay the 20 percent down here, and you're not penalized for playing for a Canadian-based team." - Yahoo Finance
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