Quantum Windbag
Gold Member
- May 9, 2010
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Yet some people keep telling me that taxes are too low.
New Jersey Taxes Could Eat Up All Of Peyton Manning's Super Bowl Earnings - Forbes
New Jersey, and every other state that imposes a jock tax, taxes players on their calendar-year income from each employer. If the Broncos defeat the Seahawks, Mannings 2014 playing income to this point would be $157,000 derived from playoff bonuses. If the Broncos lose, his playing income would be $111,000.
If Manning is unable to continue playing, New Jersey would apply its tax rates to his income and multiply that amount by the ratio of 7/33 to determine his tax liability. The 7 in the numerator represents the week he spends in the state practicing and attending required NFL events. The 33 is the total number of duty days performed during the year31 days in January plus two in February. If Manning is forced to retire, New Jersey will collect approximately $1,575 from him if the Broncos win and $982 if they lose.But should Manning continue his career into the 2014 season, New Jersey will collect an additional $45,000 from him by taxing income he has not even earned yet. Manning is due $15 million next season, which would push his 2014 earnings to $15,157,000 or $15,111,000, and bump him into Jerseys highest 8.97% tax bracket. Luckily, his duty day ratio would go from 7/33 to 7/200, without regard to the Broncos game at MetLife Stadium against the Jets next season.
If Manning is able to play next season, his New Jersey income tax would be $46,989 on $92,000 for winning the Super Bowl, or 51.08%. If they lose and he is able to play in 2014, he will pay New Jersey $46,844 on his $46,000, which amounts to a 101.83% tax on his actual Super Bowl earnings in the stateand this does not even consider federal taxes!
New Jersey Taxes Could Eat Up All Of Peyton Manning's Super Bowl Earnings - Forbes