Quote:
Originally Posted by kipperiggy
I imagine doing income taxes for an American-citizen hockey player would be a nightmare as I seem to remember from tax class that they get taxed at whatever state rate the work is performed. So you'd be taxed at 23 different US state rates plus whatever the foreign rate would be for games played in Canada.
Canada taxes based on residency and not citizenship as at Dec 31. For Canadian players resident in the US, I'm not sure if it would be State-specific or one foreign rate.
There's a reason I'm in audit and not in tax... what a mess!
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I've done a few professional athlete's tax returns and it is a nightmare, no matter if their American, Canadian, whatever. You basically have to do a state tax return for every single state they played in during the year - it's awful. You also have to pro-rate their Canadian income for the provinces they play in; they don't get the "just tax them in their province of residence as of Dec 31" rule.
And there is no perk where you meet with the client as someone else usually handles all the money, so its just a hard return with no upside.