- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Anyone know the TAX of NIL
Posted on 2/4/22 at 7:58 am to Stropdaddy
Posted on 2/4/22 at 7:58 am to Stropdaddy
It is considered earned income. Due to the tax bracket on some of these amounts it will be between 33-38% tax rate. They will pay IRS
Tax rates are marginal, even at 100K the top rate is only 24% and the effective, or average rate is closer to 18%.. but that's still a nice chunk to cough up...with no withholdings.. Gonna be fun to watch...Uncle Sugar is gonna get his... Welcome to the real world.
Tax rates are marginal, even at 100K the top rate is only 24% and the effective, or average rate is closer to 18%.. but that's still a nice chunk to cough up...with no withholdings.. Gonna be fun to watch...Uncle Sugar is gonna get his... Welcome to the real world.
1
Posted on 2/4/22 at 8:06 am to tigersbb
Get a feeling there's gonna be some IRS audits comin' to college station football players in da fewcha.
This post was edited on 2/4/22 at 8:58 am
Posted on 2/4/22 at 8:24 am to Curtis Lowe
Self employment taxes... Didn't think of that either. that's another 15%. This is going to be fun to watch. Soon, they will wish it was all under the table again. Be careful what you wish for.
Posted on 2/4/22 at 8:25 am to Scatback1
The same way pro athletes do taxes on endorsements. I am guessing they are individual contractors and have to do a 1099 but some may have a LLC or something like that.
Posted on 2/4/22 at 8:26 am to Scatback1
Lawyers are setting up corps for the money to go to. So, the smart ones will expense as much as they can against the revenue and then pay corp and personal taxes on the net.
These kids are about to learn more about tax policy in one year than most people learn in a lifetime.
These kids are about to learn more about tax policy in one year than most people learn in a lifetime.
Posted on 2/4/22 at 8:27 am to Scatback1
Yes, but it is also subject to the additional 15.3% self-employment tax
So, it’s more like 18% (income tax) + 15.3% (SE Tax) = 33.3% (total federal taxes)
And then, if you live in a state with a state income tax - you can tack on another 5%.
That would be an aggregate tax hit of roughly 38.3%
So, it’s more like 18% (income tax) + 15.3% (SE Tax) = 33.3% (total federal taxes)
And then, if you live in a state with a state income tax - you can tack on another 5%.
That would be an aggregate tax hit of roughly 38.3%
Posted on 2/4/22 at 8:43 am to Curtis Lowe
Also, will some be required to make fed and potentially state quarterly payments? If so, missing them can lead to penalties that further erode the original amount paid.
Posted on 2/4/22 at 9:44 am to dwright369
Good Math.
Posted on 2/4/22 at 10:12 am to Curtis Lowe
quote:
To recap
$100,000 NIL payment
(10,000) agent fee
(20,977) federal income and self employment taxes
(4,250) state income taxes
_______
$64,773 after tax income
Who the frick downvotes math??
Posted on 2/4/22 at 10:17 am to Scatback1
I would think a 1099...if not, expect some issues at some point in the future.
Posted on 2/4/22 at 10:26 am to MrVoodoo
yeah i think the REAL problem for players will be non cash items (cars, clothes, etc) that ended up getting taxed.
Posted on 2/4/22 at 12:25 pm to tigersbb
quote:[quote]
The athlete is receiving the NIL income not the family. they don't file a family return
That is what you got from my post. Critical thinking is something you need to understand before you post again.
Posted on 2/4/22 at 1:06 pm to Scatback1
Not if they get a W-2..this will be interesting.
Posted on 2/4/22 at 1:17 pm to Curtis Lowe
I’m sure these boosters will have access to great accountants. I’m assuming there are many things that can be written off?
Posted on 2/4/22 at 1:23 pm to blafayette
quote:
Who the frick downvotes math??
Dumbasses, same as those who thought you could transfer $500,000 to a non charitable entity with no tax consequences.
Posted on 2/4/22 at 1:48 pm to Scatback1
Also parents can no longer claim any of them.
Posted on 2/4/22 at 1:59 pm to Curtis Lowe
Agent fee is minimum 20%. Probably closer to 30%.
Posted on 2/4/22 at 3:09 pm to Scatback1
What does this even matter to y’all?
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News