Tom Brady, recent MVP of the 2015 Super Bowl, makes a very nice living quarterbacking the New England Patriots. But even he has to keep a wary eye on his taxes.
Brady’s Super Bowl bonus was a handsome $97,000. Since he pays in the top income tax bracket, his immediate tax hit was $38,412. His top Medicare rate of $2,280 brought the figure up to $40,692.
Tom was also presented with an MVP Chevy Truck gift, which he graciously gave to a teammate. The tax on the truck was $13,464. The gift tax on the truck was $8,000. What was the total federal tax? That would be $62,156.
But hold on a moment… how about the tax from the state (Arizona) where the game was played? It was 4.5 percent, or $4,404.
Brady’s taxes for the Super Bowl ended up at $66,560. The effective tax rate for Brady’s magnificent MVP effort? That would be 68.62 percent.
If you’ve guessed where I’m going with this, you’re correct! This is a reminder to start gathering your tax information — April 15 is just a short time away!