How is tax payment handled for foreign athletes?

Foreign athletes coming to the United States with a P visa – often granted to professionals with exceptional skills in sports – need to be aware of their tax obligations in the country. Even if the stay is temporary, all income earned while here may be subject to federal, state, and, in some cases, local taxes. Below, I present some important points about how tax payment works for these professionals.

When an athlete receives payments in the United States, taxes are generally withheld at the source, that is, the paying entity (such as sports clubs or event organizers) deducts the owed amount before the payment is made. This mechanism, known as “withholding,” aims to facilitate compliance with tax obligations and ensure that part of the taxes is collected in advance.

This practice is especially relevant to avoid surprises during the annual income tax filing period, when the athlete will need to reconcile their taxes with the Internal Revenue Service (IRS). Another important consideration is obtaining a Taxpayer Identification Number (TIN), such as an ITIN or, in some cases, a Social Security Number (SSN), which will allow the athlete to file their income tax return in the country.

Through this declaration, the athlete can confirm that the withheld amounts were correct or, if applicable, claim credits or even request a refund of overpaid amounts. Furthermore, athletes may have access to benefits provided by international tax treaties signed between the United States and their country of origin. Such agreements can reduce the amount of tax withheld at the source or offer other exemptions, making tax planning something to be considered carefully.

Remember that the complexity of the rules may vary according to the individual situation, the income earned, and the length of stay in the country. It is essential to strictly follow the immigration and tax laws of the United States. Seeking guidance from specialized professionals before making any decision is always advisable to avoid complications and potential penalties.

In this way, besides remaining fully compliant with the law, the foreign athlete minimizes the risks of falling into suspicious offers and promises that guarantee easy resolutions or results that deviate from official regulations.

In summary, tax payment by foreign athletes in the United States involves withholding at the source, obtaining a tax identification number, and annual income tax filing, possibly benefiting from international treaties. Staying well informed and consulting qualified professionals is essential to safely navigate this process.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.