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Reply to "2020 High School players signing as Undrafted Free Agents"

@RJM posted:

Do states go after minor leaguers like they do major league athletes for playing (working) in their state? Do they make MiLBers file in every state they play? Or do they consider the tax revenue peanuts?

I am not sure it is worth it for the states, but...  

Son's first year in milb, he played in 3 different states and a foreign country.  His W-2 did not indicate income in those states, so I figured out what percentage his income was in each state by # of games played in those states divided by the total number of games that summer whether he actually played or not.   I did the state taxes for the other states and didn't have to file, and claimed all income in his home state.  I am keeping all records.

The next year his W-2 showed actual taxes deducted from not only other states but also a city tax!  So he filed with those states especially since it was reported income.  I will say, I printed off and mailed off paper returns for the city tax since he needed to pay $3.00 and I was not about to pay turbotax the filing fees for a $3.00 obligation.

FWIW-the day before he was drafted I took son to a financial advisor and a tax guy (different people).  The tax guy said he would do the taxes for around $1500 (yikes).  Turbo tax is my friend, and I actually enjoy doing taxes.

 

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