The Jock Tax & Tax Write-Offs for Self-Employed Athletes

What is jock tax? Simply put, a jock tax is a type of income tax imposed on athletes and other professionals in every state or jurisdiction where they earn income.

This tax primarily targets but is not limited to professional athletes. It can also apply to entertainers, musicians, and other individuals who perform work in various locations.

How does the jock tax work?

Jock tax is based on the idea that income should be taxed where it is earned. 

Jock tax gained momentum in 1991 after California imposed an income tax on the Chicago Bulls after they won the NBA Finals against the LA Lakers while playing in the state. Illinois responded in kind, taxing visiting California athletes. Since then, this tax has been imposed in nearly every state in the U.S.

Jock tax can be applied to earnings from games, Olympics winnings, and more. 

Fortunately, there may be several types of tax deductions and other forms of relief for individuals who pay taxes on the same income in another state.

How is the jock tax calculated?

It’s typically based on the number of “duty days” an athlete works in a state compared to their total duty days for the season. This may include:

• Practice
• Games
• Travel days 

For example, if an athlete has 200 total duty days in a season and spends 10 of them in California, California could tax 10/200, or 5% of their income. Most U.S. states that have an income tax enforce a jock tax.

Who does the jock tax apply to?

Athlete tax primarily applies to individuals who earn income from working in multiple states. While it is most commonly associated with professional athletes, the jock tax extends to other professionals who work across state lines, such as:

• Coaches
• Sports officials
• Entertainers
• Consultants

Limits on the jock tax

Not every state imposes a jock tax. Often, those that don’t have a state income tax don’t impose a jock tax. 

Even within states that impose a jock tax, the parameters and tax rates can vary. Some states, for example, may have exemptions or reduced rates for certain types of income.

Additionally, some states may have reciprocal agreements that allow residents to avoid double taxation.

Eight tax deductions for self-employed athletes

High-earning sports professionals may be able to  reduce their taxable income through athlete tax deductions, but the rules depend on how you’re paid.

If you are considered a self-employed athlete, you can deduct ordinary and necessary business expenses against your income on Schedule C, regardless of whether you itemize your deductions. For expenses tied to Schedule A, such as state and local taxes paid, you’ll need to itemize instead of taking the standard deduction. These write-offs can help reduce your overall tax bill, allowing you to keep more of your hard-earned money.

The One Big Beautiful Bill (OBBBA) made the suspended federal deduction for unreimbursed business expenses for W-2 employees permanent. Since most professional athletes are employees of their teams, deductions like gym memberships, equipment, and uniforms are no longer available on federal returns. 

If you are self-employed, the tax write-offs below can meaningfully reduce your overall tax bill.

State taxes

Where you live makes a difference. Athletes domiciled in states that don’t impose income taxes, such as Florida, Nevada, Texas, and Washington, save having all their income taxed at the state level, though states where you play at athletic events may tax you on the portion of the income you earn while there. 

So, if you have a choice of where to live or play,you might consider a state with low or no income taxes to save some money on state tax.

Dues and fees

Some of the fees you might be able to write off if you are considered self-employed include:

• Dues paid to a professional organization or league.
• Fees you pay to an agent or a manager.
• Fees you pay for your accountant.

You may also be able to write off union dues if you’re a member of any unions related to your sport, such as: 

• NFL Players Association (NFLPA)
• NBA Players Association (NBPA)
• Major League Baseball Players Association (MLBPA)

Union dues are considered an ordinary and necessary business expense for athletes as the union plays a key role in managing their professional lives and ensuring fair treatment. These dues can be deducted as a business expense if you file a Schedule C, helping to reduce your overall taxable income.

Therapy

If you get massage therapy or stretching workouts to enhance your ability to play, those costs may be tax-deductible business expenses. Yoga classes to increase flexibility and meditation classes to improve your focus may also be deductible.

Review all your expenditures to see which ones may qualify as expenses of your business.

Gym memberships

An important aspect of an athlete’s career is maintaining physical fitness. Because of this, gym memberships may qualify as a tax write-off if they are used for professional purposes. In this case, the cost of a gym membership can be considered a legitimate business expense. 

To claim this deduction, you must demonstrate that the gym membership is used primarily for professional purposes and not for purely recreational use. 

You should consult with a tax professional to accurately account for gym memberships and other fitness-related expenses to reduce your overall taxable income.

Equipment

Whether your fitness equipment consists of racquets, balls, or boards, they are all tools of your trade as an athlete. Shoes that you wear on the field or court are probably deductible, as is your workout apparel. And the cost of transporting that equipment to games and workouts is also deductible.

Travel

The cost of meals, lodging, and transportation while on the road traveling from game to game are tax deductible, and even the cost of temporary lodging while engaging in business activities such as attending a month-long training camp.

Team uniforms

Whether you play football, basketball, golf, or any other sport, you may be able to write off your team uniform. Athletes who are required to pay for their own team uniforms can write off the cost as a tax-deductible business expense. Uniforms are an essential part of an athlete’s job. 

To qualify for the write-off, the uniform must be required for your job and not paid for or reimbursed by your team. This may include jerseys, helmets, and other gear. 

If your uniform is something that could be worn casually, like a shirt with the team’s logo that could be worn outside of training, it may not qualify as a deductible expense.

Keep receipts and records of any uniform purchase made out-of-pocket.

Uniform dry cleaning

Is dry cleaning tax deductible? Well, it may be for athletes who need to have their uniforms professionally cleaned. This is applicable for uniforms that are required for:

• Competitions
• Practices
• Promotional events

Just like the purchase of uniforms themselves, cleaning costs can be considered necessary. Whether it’s jerseys, pants, helmets, or any other sport-specific attire, keeping them clean is considered part of your professional responsibilities.

Remember, this only applies to attire that is required for your job.

Weekend warrior expenses

If you are a weekend athlete who plays sports for fun, you may not be considered to be in the business of being an athlete. If that’s the case, your expenses may be tax deductible only to the extent of the occasional money you make from participating in (and winning) athletic endeavors.

Don’t worry about knowing these tax rules. TurboTax will ask you simple questions and give you the tax deductions and credits you deserve based on your answers.

Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Expert Full Service today, in English or Spanish, and get your taxes done and off your mind.