re: Anyone know the TAX of NIL

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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.

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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.

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.

I don’t think that happens. I can see parents of these guys really screwing up the kids and themselves. If they don’t do this right, they will end up in a pure hell. With that much money, there will be too much temptation to just take it.