Tax Planning for Professional Athletes

April 20, 2017
professional athletes

Written on behalf of Feigenbaum Consulting

Professional sports is a global industry, and many professional athletes in North America will spend time in both Canada and the United States at some point in their careers. Regardless of their home team, athletes travel throughout Canada and the United States for training camps and road games.

Professional athletes traveling between Canada and the United States

With any amount of cross-border travel, tax planning issues can arise. For professional athletes, many of whom are high earners with a public profile, it can be very risky to fall afoul of tax laws in Canada and the United States.

Depending on citizenship status, and how much time you spend in the United States in a given year, your tax obligations can vary. For example:

  • If you are a US citizen, you will be taxed in the United States on your worldwide income, regardless of where it was earned.
  • If you are a non-US citizen, but you spent a certain number of days in the United States in the previous three calendar years, you may be required to file a US tax return on your worldwide income.
  • If you are a non-US citizen, and you did not spend time in the United States, you still may need to pay US taxes on any US source income, including royalties, dividends and interests.

Reliable cross-border tax advice for professional athletes, coaches and managers

Most professional athletes have an agent or manager that they rely upon to handle their financial affairs, including hiring and coordinating tax and accounting services. Ensuring that trusted, qualified advisors are in place should be a priority for professional athletes looking to protect their earnings and assets.

If you are a professional athlete, getting the right tax advice is essential so that you do not pay any more than you owe, file all necessary documents on time, and do not incur penalties or interest.

At Feigenbaum Tax Law, we offer comprehensive legal and accounting services for professional athletes and entertainers, including tax planning for multi-jurisdictional deals. Our professionals are known in the industry for providing straightforward advice, so clients and players can focus on their work.

We create tailored, custom planning solutions for high net worth clients. To speak with us about your needs, contact us online, or call toll free at (877) 275-4792.

 

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