Tax Deductible Expenses

A "write-off" is an expense that is subtracted from income before tax is calculated. These tax deductible expenses lower the taxpayers over all income tax liability.

The proper tax treatment of expenses incurred by professional athletes in the performance of their duties is often a topic of significant confusion. Furthermore, the IRS and CRA are scrutinizing and challenging the deductions more frequently than ever. Generally, expenses incurred by athletes for the purpose of earning income are deductible, subject to certain limitations. Specifically, the costs must be considered ordinary and necessary.

Canadian Resident Deductible Expenses
  • Legal Fees
  • Accounting Fees
  • Medical Expenses
  • RRSP Deductions
  • Consulting Fees
  • PHPA Dues
  • Interest & Carrying Charges
  • Child Care Expenses
  • NHLPA Dues
US Resident Deductible Expenses

Note: In the US, employee business expenses are treated as “miscellaneous itemized deductions” which are deductible only to the extent they exceed 2% of the athlete’s adjusted gross income (AGI). In addition, most itemized deductions will be phased-out entirely for high income individuals. An individual whose AGI exceeds a threshold amount (adjust annually) is required to reduce the amount of allowable itemized deductions by 3% of the excess over the threshold amount.  Further, effective 2018 , the recent tax code reform has eliminated most personal itemized deductions and many credits. 

  • Agent Fees
  • Attorney Fees
  • Investment Management Fees
  • League Fines
  • Hockey Tickets
  • Cellphone (Business Related)
  • Charitable Donations
  • Meals & Entertainment (50%)
  • Workout Equipment/Clothing
  • PHPA Dues
  • NHLPA Dues
  • Training/Condition Costs
  • Miles Driven (Business Related)
  • Postage (Fan Mail)
  • Moving Expenses
  • Mortgage Interest
  • Business Flights
  • Taxis/Limousine

Download Tax Deductible Expense PDF

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