What a game. The Falcons’ lead fell faster than Lady Gaga at halftime and the Patriots won their fifth Super Bowl in a way only the Patriots could. Tom Brady added another Super Bowl MVP award to his collection and the world watched NFL Commissioner Roger Goodell hand the Lombardi Trophy to Patriots owner Robert Kraft.
I gotta be honest… This was a bittersweet outcome for me; being from New York, I despise the Patriots, but as a Tampa Bay Buccaneers fan, I could not be happier that the Falcons franchise still does not have a Super Bowl win.
With that said, since I am a man of the people, I’ll put my personal opinions on halt and move on…
Although only the Patriots get to go home with the ring, each athlete goes home with a fatter wallet. Every Patriot gets a $107,000 bonus for becoming a champion and every Falcon gets a nice little $53,000 consolation prize. Not bad, huh? But that’s not even the best part…
The Super Bowl was played in Houston, TX this year, and everything’s bigger in Texas––especially the net checks. The players do not have to pay state income tax to Texas on their Super Bowl payouts since Texas is one of the few states that does not have a “jock tax”.
The jock tax is a tax that is imposed on visitors to a state or city who earn wages during their time in that jurisdiction. Professional athletes are the most common taxpayers to consistently get hit with this tax since their salaries are public and their schedules make it easier to track time spent in various cities and states.
While it is true that there is no Super Bowl jock tax this year, the players will still have to pay state income taxes to their resident states on the payouts they receive. For example, Tom Brady would have to pay Massachusetts state tax (5.1%) and Matt Ryan would have to pay Georgia state tax (6%) on their bonuses, assuming those are the actual states they live in.
All in all, it was a pretty good day money-wise for everyone…except for me, who didn’t win anything in my playoff fantasy league. I’ll just have to train harder this offseason. Next year’s my year, I can feel it.
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The photo used for the featured image of this blog post is by U.S. Customs and Border Protection (Ozzy Trevino of U.S. Customs and Border Protection) (170131-H-OT911-0011) [Public domain], via Wikimedia Commons
Nick Aiola is a CPA located in New York, NY. Nick provides tax and accounting services to a wide range of clients, including individuals, businesses, and fiduciary entities.