How Losing The Super Bowl Could Cost Peyton Manning More Than A Ring
By BuildMyBiz on February 2nd, 2014
When Peyton Manning leads the Denver Broncos onto the field at Super Bowl XLVIII, he’ll be playing to cap a record-breaking regular season. He’ll be playing to cement his legacy as one of the greatest quarterbacks of all time. He’ll be playing to silence his critics (and maybe even his baby brother). But, according to a Forbes article, Peyton Manning could also be playing to save $844 in New Jersey state income tax.
The ‘cold-weather’ location isn’t the only factor in this year’s historic big game. Thanks to New Jersey’s “jock tax,” which is based on calendar-year income, Peyton and anyone else playing today could be subject to a hefty tax liability on their big game bonuses (especially players who return to New Jersey to play next season). K. Sean Packard, CPA, explains:
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 state—and this does not even consider federal taxes!
History will decide where Peyton Manning sits among the greats, but New Jersey could have something to say about how much money he’ll have in his pocket.