What has IRS ruled on taxation incl FICA and Medicare taxes? And when are payments (quarterly payments ?) to IRS due? (Questions are on any rulings, not what you or I think rulings should be.)
IRS rulings on NIL
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Last: 9 days ago by Canyon Lake Agbu94
I am going to assume that recipients of NIL are treated as contract employees, therefore whatever taxes are due are the recipient's sole responsibility.
End the IRS
Dude, how do you expect Liberals to buy votes by keeping people hooked on government cheese?4 said:
End the IRS
you are correctEllis Wyatt said:
I am going to assume that recipients of NIL are treated as contract employees, therefore whatever taxes are due are the recipient's sole responsibility.
don't know why an IRS "ruling" would be needed as it's not really disputed, or if anyone has even asked.
https://poole.ncsu.edu/thought-leadership/article/the-tax-bill-for-nil/
Quote:
Unlike the scholarships that used to be a student-athlete's only direct compensation for playing, NIL payments are taxable income. When athletes receive payments from NIL collectives or businesses, they'll most likely receive a tax document, such as a 1099 form at the end of the year, which the business also sends to the IRS to report the income paid to the recipient.
And unlike wages from part-time jobs, which some student-athletes may have held while in college, NIL payments probably don't come with taxes withheld. It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year. If they don'tor if they underestimate their income and underpaythey might end up with a large tax surprise (and potentially a tax penalty) at year end. For example, a college quarterback with $1 million in NIL dealsthe average income for a Southeastern Conference quarterbackin 2023 would have owed approximately $325,000 in federal income tax. If he didn't pay any tax throughout the year, he would have had to write a huge check when filing their tax return. He may have also owed penalties and interest on this underpayment.
Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
The IRS will get theirs. If I gotta pay, they gotta pay. When I first got hired as a graduate TA at the U of Utah, I did not realize that the tuition waiver (as a then-Texas resident, it was pretty hefty since it was an out of state rate) was then considered "income" by the IRS. Call it the price of learning the financial realities of life.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
-Havelock Vetinari
CanyonAg77 said:Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
All of them. I would bet the ADs probably have someone taking care of teaching athletes what they need to take care of and how NIL works, just like any other resource.
I hope you are correct.
I also hope the checks they write will push them to vote conservatively.
I also hope the checks they write will push them to vote conservatively.
tk for tu juan said:
https://poole.ncsu.edu/thought-leadership/article/the-tax-bill-for-nil/Quote:
Unlike the scholarships that used to be a student-athlete's only direct compensation for playing, NIL payments are taxable income. When athletes receive payments from NIL collectives or businesses, they'll most likely receive a tax document, such as a 1099 form at the end of the year, which the business also sends to the IRS to report the income paid to the recipient.
And unlike wages from part-time jobs, which some student-athletes may have held while in college, NIL payments probably don't come with taxes withheld. It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year. If they don'tor if they underestimate their income and underpaythey might end up with a large tax surprise (and potentially a tax penalty) at year end. For example, a college quarterback with $1 million in NIL dealsthe average income for a Southeastern Conference quarterbackin 2023 would have owed approximately $325,000 in federal income tax. If he didn't pay any tax throughout the year, he would have had to write a huge check when filing their tax return. He may have also owed penalties and interest on this underpayment.
The good news is these kids having to write out a huge check (vs withholding) will likely become Republicans in record time.
I don't think you know me.
state law in Texas and most states with NIL laws require courses on financial planning/literacy be taught
https://www.si.com/fannation/name-image-likeness/news/texas-am-hosts-education-financial-literacy-conference-collaboration-advance-nick9
https://www.si.com/fannation/name-image-likeness/news/texas-am-hosts-education-financial-literacy-conference-collaboration-advance-nick9
"Unlike many states, Texas's NIL bill requires "a student athlete participating in an intercollegiate athletic program at the institution to attend a financial literacy and life skills course during the student's first academic year at the institution. The course must be at least five hours in duration and include information on financial aid, debt management, time management, budgeting, and academic resources available to the student athlete."
So there are many states that don't require anything. Though better than nothing, not sure how much impact "at least five hours" is going to provide, especially for an 18 or 19 year old. Around March and April there are going to be some long faces, "students" and parents alike.
So there are many states that don't require anything. Though better than nothing, not sure how much impact "at least five hours" is going to provide, especially for an 18 or 19 year old. Around March and April there are going to be some long faces, "students" and parents alike.
ABATTBQ11 said:CanyonAg77 said:Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
All of them. I would bet the ADs probably have someone taking care of teaching athletes what they need to take care of and how NIL works, just like any other resource.
Probably the only mandatory class attendance they face.
ABATTBQ11 said:CanyonAg77 said:Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
All of them. I would bet the ADs probably have someone taking care of teaching athletes what they need to take care of and how NIL works, just like any other resource.
Pretty sure they have agents now
Hmmm, is this GIFT money? Never really thought about the taxable consequences nor the mechanics of how NIL money is obtained by each athelete.Ellis Wyatt said:
I am going to assume that recipients of NIL are treated as contract employees, therefore whatever taxes are due are the recipient's sole responsibility.
Do they get a lump sum? Periodic distributions? Enumerated donors and amounts?
If I give less than $600 cash, as untraceable cash gift, it's not taxable since the taxes have been paid by the giver in the form of an income tax? Correct me if I'm wrong, I know I use to be able to gift $10,000 tax free.
I'm really curious...Is the University doing a financial pass through or are they taking a cut. They must be in some fashion or another, for example, I can understand me buying a #10 game shirt...some of the money goes to the athlete, some to the apparel manufacturer and some to the university for the copyrights and if bought at the University Bookstore, some to them too, right?
Quote:
Hmmm, is this GIFT money?
no.
Why not? Just curious.BMX Bandit said:Quote:
Hmmm, is this GIFT money?
no.
because it payment made to use/license the athlete's name, likeness or image. payment in exchange for something is not a gift
Got it!
I've said this before - it won't be long before they won't have to attend class at all.Squadron7 said:ABATTBQ11 said:CanyonAg77 said:Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
All of them. I would bet the ADs probably have someone taking care of teaching athletes what they need to take care of and how NIL works, just like any other resource.
Probably the only mandatory class attendance they face.
18 year olds with an accountant.
I just wanted to play SWC football , chase women , drink beer and get a degree.
Will say if you bring in guys who can't do an IRS short form ( what business expense would they have?) will they remember the playbook?
I just wanted to play SWC football , chase women , drink beer and get a degree.
Will say if you bring in guys who can't do an IRS short form ( what business expense would they have?) will they remember the playbook?
VitruvianAg said:Why not? Just curious.BMX Bandit said:Quote:
Hmmm, is this GIFT money?
no.
If it's gift money it is not compensation for using the player's NIL. NIL is a contractual agreement, like any other endorsement. The athlete can still get monetary gifts, but those are still under the table payments not related to NIL. And whether the gifted paid income taxes isn't relevant. If I gift you $11k (you're correct about the $10k), you'll pay taxes on it regardless of the fact that I've also paid taxes on it somewhere previously
For things like jersey sales, the athlete would get whatever royalty percentage the vendor pays. Back when you could only buy generic #12 jerseys, the school got 100% of whatever royalties. Now the school (12th man foundation, athletic dept, and university licensing all will get a cut) has to share some tiny slice with the kid whose name is on the shirt. It will be like every other royalty item - cost of shirt minus cost of inputs minus royalties = store profit
Ellis Wyatt said:
I am going to assume that recipients of NIL are treated as contract employees, therefore whatever taxes are due are the recipient's sole responsibility.
So the next big joke is the amount of players who are 3 years behind on their taxes.
Kenneth_2003 said:ABATTBQ11 said:CanyonAg77 said:Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
All of them. I would bet the ADs probably have someone taking care of teaching athletes what they need to take care of and how NIL works, just like any other resource.
Pretty sure they have agents now
I believe that is correct, and any agent worth their Jerry McGuire VCR tape is going to include tax advisor services.
go play DII or DIII ball thenOwlagdad said:
18 year olds with an accountant.
I just wanted to play SWC football , chase women , drink beer and get a degree.
Will say if you bring in guys who can't do an IRS short form ( what business expense would they have?) will they remember the playbook?
Surely they are getting substantial advice from their agent or respective schools. Even still, I wonder how many of these big NIL athletes look at their return and one of the first questions is...What are SE taxes and why do I have to pay them?
Those that have agents probably are doing this, as most agents would advise their clients. Probably put them in touch with good Tax folks.CanyonAg77 said:Quote:
It's very important for student-athletes to track their NIL earnings and make periodic estimated tax payments throughout the year.
How many do you think are doing that? 50% 10% ????????
I agree they will be contract employees. That raises a question in my mind. Since they are now contract employees, could that make their free housing and food a taxable event?
If so, then there will be all sorts of problems.
If so, then there will be all sorts of problems.
they are not contract employees of the school. they're contract employees of whoever pays their NIL money.
And "continuing ed" (college attendance) funding.SW AG80 said:
I agree they will be contract employees. That raises a question in my mind. Since they are now contract employees, could that make their free housing and food a taxable event?
If so, then there will be all sorts of problems.
“If you’re going to have crime it should at least be organized crime”
-Havelock Vetinari
-Havelock Vetinari
Bet these athletes will have sticker shock when they have to fork over 22%+ to federal Treasury daddy ... and those states with state income taxes.... should be an incentive to get recruits to come to non state income tax states.
BQ_90 said:go play DII or DIII ball thenOwlagdad said:
18 year olds with an accountant.
I just wanted to play SWC football , chase women , drink beer and get a degree.
Will say if you bring in guys who can't do an IRS short form ( what business expense would they have?) will they remember the playbook?
Sometimes that's fun to watch. Nobody loafing.
We should be selling this bigtime. But I don't think we are.Trajan88 said:
Bet these athletes will have sticker shock when they have to fork over 22%+ to federal Treasury daddy ... and those states with state income taxes.... should be an incentive to get recruits to come to non state income tax states.
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