The football season kicked off with a bang last night as the Kansas City Chiefs, last year’s Super Bowl champions, started the season with a strong win. But that's not all the buzz—Taylor Swift, who’s dating Chiefs star Travis Kelce, is expected to attend many of their games, drawing even more attention. With Swifties across the country tuning in to see their favorite pop star, this football season is off to a lively start!

While fans are focused on the field and celebrity appearances, players are dealing with another kind of challenge off the field—tax planning. NFL players collectively earn around $8.2 billion a year, with top earners like Cincinnati Bengals quarterback Joe Burrow bringing in $55 million annually. But taxes can take a huge chunk of that income, up to 40%, making smart money decisions and tax planning crucial. Just like athletes, everyday earners and business owners in Portland face tax challenges, and Portland tax planning can help you keep more of your income.

This year, rookie quarterback Caleb Williams, the first overall pick by the Chicago Bears, attempted to use innovative tax reduction strategies. With a four-year, $40 million contract, Williams wanted to be paid through an LLC as an independent contractor instead of an employee, which could have helped him save on taxes.

Williams’ plan could have brought significant tax reduction. By setting up an LLC taxed as an S corporation, he could have avoided nearly $1.5 million in Medicare taxes by converting some of his salary into K-1 distributions. This setup would also allow him to deduct expenses like agent fees and union dues—expenses regular employees can no longer deduct under current tax laws. Additionally, it would have allowed him to create more favorable retirement and health plans.

Williams also explored another creative option—getting paid through a forgivable loan. This would have allowed him to defer paying taxes until the loan was forgiven, providing more flexibility in his tax strategy.

However, the NFL shut down both proposals, citing the current collective bargaining agreement. While the league is open to innovation on the field, they’re less flexible about changing tax arrangements for individual players.

Even with these hurdles, Williams still has plenty of opportunities for smart money strategies. He has earned $10 million from name, image, and likeness deals and signed endorsements with big brands like Dr. Pepper and Nissan. Plus, he launched his own investment firm, 888 Midas, focusing on private equity, venture capital, and real estate—all areas where tax planning plays a huge role.

The takeaway here? Whether you're a professional athlete or a Portland resident looking for tax reduction strategies, how you structure your income can significantly impact your tax bill. With effective Portland tax planning, you can keep more of your hard-earned money. Now is the time to take advantage of smart money strategies and maximize your savings.

Ready to tackle your taxes and create a winning plan? Schedule a Right Fit Call with us today to see how we can help you plan for your financial future: Schedule a Call. Let’s see if our tax strategies are the right fit for you!