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re: Anyone know the TAX of NIL
Posted on 2/3/22 at 9:52 pm to Stropdaddy
Posted on 2/3/22 at 9:52 pm to Stropdaddy
The irs will get a good chunk since most will file single without any write offs since the school covers everything. The school needs to prepare the kids for this and also have someone that can assist with taxes.
They are going to get a dose of reality asap and they will figure out that the government will make that 100k much less. There will be many throughout the country that will spend all of it and not have enough to cover the taxes unfortunately.
They are going to get a dose of reality asap and they will figure out that the government will make that 100k much less. There will be many throughout the country that will spend all of it and not have enough to cover the taxes unfortunately.
Posted on 2/3/22 at 10:05 pm to crossfire
I feel like that’ll be the case. 1099s don’t typically have income tax withheld so most of these kids and families are going to be blindsided.
LINK
NIL - you are being paid for use of your name, image, or likeness… these aren’t gifts and you’ll have to contribute something in the way of name image or likeness toward whomever contracted you. Appearances, social media postings, autographs, photo shoots, etc. There will be contracts and there will be breaches of contract that we’ll see. There are going to be lots of kids hurting from not understanding the depth of what they’re getting into. Those under the table deals of old never saw Uncle Sam - all of these NIL deals will.
LINK
NIL - you are being paid for use of your name, image, or likeness… these aren’t gifts and you’ll have to contribute something in the way of name image or likeness toward whomever contracted you. Appearances, social media postings, autographs, photo shoots, etc. There will be contracts and there will be breaches of contract that we’ll see. There are going to be lots of kids hurting from not understanding the depth of what they’re getting into. Those under the table deals of old never saw Uncle Sam - all of these NIL deals will.
Posted on 2/4/22 at 8:25 pm to crossfire
quote:And that is what I've been wondering about. The whole tax situation being discussed here is pretty straightforward. Well, as straightforward as federal income and payroll taxes can get anyway.
The irs will get a good chunk since most will file single without any write offs since the school covers everything. The school needs to prepare the kids for this and also have someone that can assist with taxes.
They are going to get a dose of reality asap and they will figure out that the government will make that 100k much less. There will be many throughout the country that will spend all of it and not have enough to cover the taxes unfortunately.
But I'm wondering if the IRS, not anyone else by the way- not the NCAA, not the schools- just the IRS, will decide that any or all of tuition, books, housing, stipend, meals (training table) will all now count as taxable consideration because it is being "gifted" for the same activities that earned them NIL income.
That's a whole other level of risk/liability, complexity, and further blurs the line between employee and not.
In other words, if their primary source of income is generated by being an athlete, then the benefits given for being the same athlete is also income or compensation by other means and therefore taxable. It's the equivalent of the IRS taxing a Christmas bonus. Even though it is a bonus, it is still income from the same place your primary taxable income comes from. That also means it doesn't qualify as a gift.
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