Do pro tennis players like Djokovic pay US taxes on tournament winnings if they live in Monaco with no income tax?

Title: Do pro tennis players like Djokovic pay US taxes on tournament winnings if they live in Monaco with no income tax? 1 If I'm understanding international taxes correctly, I've been wondering about how this works for pro athletes. Let's say a tennis player lives in Monaco (where there's no income tax) but they compete and win prize money at tournaments like the US Open. Do they still have to pay taxes to the IRS on those winnings? Or do they get to keep everything tax-free because they're residents of a country that doesn't charge income tax? This seems like it would be a huge advantage for athletes who strategically choose their home base. If someone lives in Monaco and earns $3 million from tournaments in the US, UK, Australia, etc., do they just get to keep all of it without paying taxes anywhere? I'm confused about how the tax obligations work when income is earned in one country but the person lives in another country that doesn't tax income.

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20 comments

Amina Diop

•8M

8 This is actually a great question about international taxation! When athletes like tennis players earn money in the US (like winning the US Open), they absolutely do pay US taxes on those earnings regardless of where they live. This is called the "source principle" - income is taxed where it's earned. The US requires all nonresident aliens who earn US-source income to pay taxes on it. For professional athletes, the IRS specifically targets what they call "US-sourced income" which includes tournament winnings, appearance fees, endorsement income attributable to US events, etc. Athletes from tax-free locations like Monaco still file US tax returns and pay US taxes on their US earnings.

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Amina Diop

•8M

8 Yes, professional athletes typically file tax returns in multiple countries where they compete. They have specialized accountants who handle this complexity. For major tournaments, the tax is often withheld automatically from prize money. Most countries have their own versions of taxation for nonresident athletes, sometimes called "jock taxes." Athletes can often claim foreign tax credits in their home country to avoid double taxation, but since Monaco doesn't charge income tax, players living there don't have that issue - they simply pay taxes to each country where they earn income.

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Amina Diop

•8M

15 I dealt with this exact scenario when I was organizing my international income! I discovered taxr.ai (https://taxr.ai) when I was completely overwhelmed trying to figure out how my foreign income would be taxed. I'm not a pro athlete, but I do consulting work in several countries while living in a tax-favorable jurisdiction. The tool analyzes your specific situation with international income and gives you detailed guidance about your tax obligations in each country. It saved me from making some serious mistakes about what I needed to report where. They have specific modules for athletes, entertainers, and other professionals with international income streams.

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Amina Diop

•8M

15 Yes, it absolutely works for complicated situations. I was splitting time between three different countries with income sources in five countries, and it correctly identified my tax residency status and reporting requirements for each jurisdiction. The system specifically accounts for tax treaties between countries. That's actually one of its strengths - it knows which provisions of which treaties apply to your specific situation. In my case, it identified a provision in the US-Singapore tax treaty that saved me from double taxation on a particular income stream that I wouldn't have known about otherwise.

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Amina Diop

•8M

19 Just want to follow up about taxr.ai - I decided to try it despite my initial skepticism, and wow, it was incredibly helpful! My situation involved income from both US and Canadian sources while considering a move to Portugal. The system immediately identified the relevant tax treaty provisions and explained exactly what my obligations would be in each country. It even caught a special exemption I qualified for that my previous accountant had missed. I was able to make a much more informed decision about my move based on the actual tax consequences rather than general advice I was finding online.

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Amina Diop

•8M

6 After struggling to get answers from the IRS about my international income situation, I finally tried Claimyr (https://claimyr.com) and was honestly shocked at how well it worked. I had been trying to reach someone at the IRS for weeks with no luck - constant busy signals or disconnections after waiting for hours. With Claimyr, I got a callback from an actual IRS agent within about 30 minutes who answered all my questions about reporting foreign tournament winnings. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. It saved me days of frustration and uncertainty about how to properly report my international income.

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Amina Diop

•8M

6 It uses a system that continually redials and navigates the IRS phone tree until it secures a spot in the queue, then calls you when an agent is about to be available. It's completely legitimate - they just automate the frustrating part of getting through the phone system. I was skeptical at first too, but when you think about it, it's just doing what you'd do manually but with technology that doesn't give up. My call was specifically about how tournament winnings are reported when earned in multiple countries, and the agent was extremely helpful once I actually got to speak with them.

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Amina Diop

•8M

19 I need to publicly eat my words about Claimyr. After being completely skeptical, I was desperate enough to try it yesterday after my fifth failed attempt to reach the IRS about my foreign income questions. Within 45 minutes of signing up, I was literally talking to an IRS representative who answered all my questions about source taxation for my independent contractor work across borders. The service did exactly what it claimed to do. I've been struggling with this for MONTHS and finally got clear answers about my specific situation. If you're dealing with international tax questions that need official clarification, this is absolutely worth it. I'm now kicking myself for not trying it sooner.

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Amina Diop

•8M

3 Just to add some practical experience here - I'm a sports agent who represents several international athletes. The taxation of international athletes is incredibly complex and varies by sport and country. For tennis specifically: 1. Players pay taxes in each country where they earn prize money 2. They also pay taxes on a portion of their endorsement income in countries where they compete 3. Some countries have special tax rates or exemptions for visiting athletes 4. The US is particularly aggressive about taxing foreign athletes This is why almost all pro tennis players have specialized international tax accountants. Even with Monaco residency, they're still paying significant taxes globally.

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Amina Diop

•8M

3 Endorsement income allocation is actually one of the most complex parts. It's typically apportioned based on where the athlete performs/appears. For a global endorsement deal, tax authorities often look at how many days the athlete competed or appeared in their country versus globally. For example, if a player competed in the US for 60 days out of 200 total competition days in a year, roughly 30% of their global endorsement income might be considered US-sourced and taxable by the IRS. The exact formulas vary by country and specific endorsement contract terms. This is frequently an area where athletes and tax authorities disagree on the proper allocation.

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Isabella Santos

•5M

This is such a fascinating topic! I had no idea that professional athletes had to deal with such complex international tax situations. It really puts into perspective how much administrative work goes into being a global sports star - not just the training and competing, but having to navigate tax laws in dozens of countries. It's interesting that even living in Monaco doesn't completely eliminate tax obligations. I always assumed that was the whole point of athletes moving there, but it sounds like they're still paying substantial taxes to every country where they earn income. The endorsement income allocation based on competition days is particularly complex - I can see why there would be disputes between athletes and tax authorities over those calculations. Thanks to everyone who shared their experiences with the various tax tools and services. As someone who occasionally does freelance work across state lines, I can only imagine how much more complicated it gets at the international level with different tax treaties and regulations.

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Aisha Mahmood

•4M

You're absolutely right about the administrative complexity! What really surprised me when I first learned about this is how the tax obligations follow the athlete everywhere they go, regardless of their residence status. It's like they're carrying a tax burden from every country they've ever competed in. The endorsement allocation formula is particularly mind-boggling to me. Imagine being Nike and having to track exactly how many days each sponsored athlete spent competing in each country, then calculating what percentage of their endorsement fee is taxable where. And then multiply that across hundreds of athletes and dozens of countries. The accounting must be a nightmare! It makes you appreciate how relatively simple domestic tax situations are, even when they feel complicated. At least with freelance work across state lines, you're usually just dealing with one country's tax system and maybe a few different state rules.

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