Elvis Costello, soon to be recognized as an “Officer of the Order of the British Empire” (“OBE”), summed it up best when he penned the lyrics “She thought that I knew and I thought that she knew.” This is exactly how I felt when colleagues, clients, friends and everyone else would ask me questions about the so-called “Jock Tax.” While I never knew what this super-secret mystery tax consisted of, I always thought I should know or at least my superiors certainly would.
So what is this Jock Tax we speak of? You mean you don’t know. All right, I will let you in on a secret. There is no Jock Tax. What we are referring to is simply the nonresident income tax. The same nonresident income tax that any of us are subject to if we perform services in a state other than our state(s) of tax residence.