The Serbian sensation has won five Grand Slam titles and is where does tennis player djokovic live battling for his sixth overall and first at Roland Garros. He has quickly become a fan favorite since his first Grand Slam finals appearance in and has since solidified himself as one of the best to play the game. So why, exactly, do we love Djoker so much? Read on to find out. He's Good.
We watch matches, have favorite players Call us, Federer! The game of tennis is thrilling.
Between prize winnings, sponsorships, speaking engagements, and clinics—not to mention international play—the income streams of top tier athletes make for some of the most interesting tax cases out there.
How does Serena Williams, one of the most decorated tennis players of all time, spend her Tax Day? Does Roger Federer have another grand slam title in him before he retires?
For every Venus Williams, you have two Naomi Osakas—and tax laws vary widely from country to country.
International Players Why do so many top international players seem to live in places like Monaco, Dubai, and Switzerland? Two words: Worldwide income. A majority of countries have specific tax codes governing any foreign earnings, so international figures who make money worldwide will often settle down in places where foreign income taxes, or income taxes in general, are low or nonexistent.
For pro tennis players who live outside the U.
Other tax havens such as Dubai or Switzerland carry their own tax advantages. Though he retired a few years ago, Andy Roddick lives in Austin, Texas. While these three all had childhood ties to their current residences, Florida and Texas also carry one distinct advantage: No income tax.
Only seven states—Florida, Texas, Wyoming, Washington, South Dakota, Nevada, and Alaska—have no income tax, which is why it just makes good financial sense for athletes to call these states home.
Though, to our knowledge, there are currently no active pro tennis players hailing from South Dakota.
The way these players are taxed is, well, complicated. But we already knew that. Some states expect for you to pay them taxes if you arrive in their state at 8am, earn money, and leave at 5pm—while others have a window of 10 to 60 days before their nonresident income taxes kick in.
Depending on their local income tax laws, a tennis player might end up being taxed twice, where they win their money and again where they live.
For foreign players in the U. Even when the prize totals are upwards of a million dollars a pop, sponsorships are truly the bread and butter of tennis players.
Even a sponsored Instagram post or commercial could earn an athlete thousands or hundreds of thousands of dollars alone! Broadly speaking, in the United States this kind of income is classified as self-employment income. When he finds his way onto a Wheaties box, any money he makes as the face of The Breakfast of Champions will be taxed as self-employment income.
Tennis players benefit from being untethered to corporations like the NFL or a major sports team with conflicting trademarks, so some athletes make a brand out of themselves. How Are Tennis Players Taxed?
As you can see, tennis taxation is a tricky subject. Between the international play and diverse income streams, it can be hard to wrap your head around the complex set of tax laws that apply.
But just like anything tax-related, you simply need to understand the basics principles and go from there. For tennis pros, the location and source of income make a huge difference on how much money they owe, and where they owe it.
For now though, us tax pros will turn our focus to what we truly find most interesting about tennis players—the tennis! Get top tax secrets, delivered.
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