dbestpro
07-30-2008, 12:52 PM
Talk has increased about NBA players going overseas. which may eventually affect the Spurs.
When you work overseas as a U.S. citizen you pay US taxes less the amount of foreign taxes. Look for the IRS to consider the tax payments as salary thus still requiing the US worker abroad to pay full U.S. tax. There are workgroup exceptions, but no such exception exists for basketball players.
So, if Joe USA is payed equal to 10 mil USA dollars and another 3 mil in taxes to the foreign country, he will pay US taxes on 13 mil less the 3 mil in foreign tax. At 30% (round estimate) of 13 mil he will still owe close to 1 mil in US taxes.
When you work overseas as a U.S. citizen you pay US taxes less the amount of foreign taxes. Look for the IRS to consider the tax payments as salary thus still requiing the US worker abroad to pay full U.S. tax. There are workgroup exceptions, but no such exception exists for basketball players.
So, if Joe USA is payed equal to 10 mil USA dollars and another 3 mil in taxes to the foreign country, he will pay US taxes on 13 mil less the 3 mil in foreign tax. At 30% (round estimate) of 13 mil he will still owe close to 1 mil in US taxes.