The schools SHOULD not and do not want to get involved here, as little as possible at least. NIL is supposed to be a 3rd party Name Image Likeness deal, an endorsement basically. It’s not supposed to be a payment just to be on the team, that’s why all these ‘non-profit’ deals include appearances and what not.

So the schools shouldn’t be ‘providing’ accountants to directly help. At most they should be offering a class or seminar on how to manage their money with consultants there to offer more assistance.

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

40206 posts

Posted on 4/28/22 at 1:51 pm to VABuckeye

quote:
My question is will they be subject to pay taxes in every state they play in as professional athletes are?

Only if they perform activities related to payment in those other states.

The athletes are not being paid for playing games. They are basically paid for endorsements / professional services, so they will be taxed in the state in which those activities are conducted.

Edited to add... the athlete's "home state" will also want to be involved, especially if the athlete is still considered a resident of that state... but other state tax credits will help with this.

Unless the athlete earns his money in a no-tax state like Texas while being a resident of a tax state.

For example, a University of Texas athlete with an NIL deal who still is considered a resident of Louisiana.

This post was edited on 4/28/22 at 1:55 pm

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Posted by LSUFanHouston

NOLA

Member since Jul 2009

40206 posts

Posted on 4/28/22 at 1:56 pm to BigLSUNut

quote:
With all of the money now being paid to athletes for NIL, what are the tax consequences?

Taxable with allowable deductions.

Most of them will end up needing to file a Schedule C.

A few higher paid athletes with decent parental support (think the Arch Mannings of the world) I'm sure will set up a C or an S corporation to handle this.

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