Greetings!,

If you were Sam Darnold of the Super Bowl winning Seatle Seahawks, what would you do with your victory bonus of approximately $178,000? How about pay California state taxes?

It was reported by Pro Football Network this past week, that Darnold’s victory bonus of approximately $178,000 created a tax liability to the state of California. It is estimated at around $249,000. This results in a net loss of $71,000 just for playing the game in that state.

Many states and even countries (think of baseball and hockey in Canada, or other international games) tax athletes as non-residents for visiting teams. The result can be higher taxes across multiple jurisdictions.

Now, think if the Super Bowl had been played in Texas or Florida where there is no income tax. The victory bonus would be subject to federal income tax, but not state tax.

California has income tax brackets that increase as earnings increase. Since Darnold played multiple games in California, each game added to his tax total. Keep in mind, according to Spotrac.com, he is in the middle of a 3-year, $100.5 million contract, so he is likely able to afford the tax hit.

However, it can be the things we don't think of that can take bites out of our paycheck.

Speaking of taxes: we have created a relationship with Brad Vander Stel, CPA. Brad is one of my oldest friends, my college roommate, and some one I trust in the tax field. Beginning this year, he is available for your 2025 income tax returns. Soon, he will also be available for tax planning.

We hope you enjoyed the Super Bowl, and have your tax preparation strategy lined up for this year. However, if you need help, please reach out to us. We would be happy to get you some answers.

As always, thanks for reading.



Bernie & Chad