Every tennis player has her own play style–and her own tax situation. Unlike many other elite athletes, a professional tennis player may win a match in Europe, then travel to an event appearance in Asia to promote a U.S.-based product. This can be exciting, but it can also make for complicated tax situations–and they will be different for each player.
International tax rules are a reality for many tennis players. To complicate things further, taxes are often based on several constantly shifting factors, including where you live, what you earn, where you earn it and your tax residency status. But a few key moves can help you be prepared.
1. Location, location, location
When it comes to taxes, geography matters. No matter where you live, you will most likely incur tax obligations—both filing and liability—in the countries and states where you earn money as a tennis player, whether that’s as a result of winning a match or serving as a paid spokesperson.
You may need to consider not only the country where you’re earning money, but the region, state or city within that country. For example, in the United States, the so-called “jock tax” means that athletes have to pay taxes in individual states if they earn money there. That can vary from 0% in a state like Florida, New Hampshire or Wyoming to 13.3% in high-tax states like California.
Where you make your primary residence can also have a big impact on your overall tax bill, so factor that in when considering any permanent moves.