Debate is always good. Let the people decide.
Well, Florida and Texas do not have state income taxes.
What about SS and Medicare taxes ?
Federal taxes apply to all income unless it’s from tax exempt municipal or federal bonds.
Exactly. I wonder if it applies to NIL !!
Athletes receiving NIL will get a Form 1099 from the payor. Social Security and Medicare are not withheld from Form 1099. Those taxes will be owed when the athlete files his/her annual federal income tax filing. If they don’t plan for the payment of those taxes, they will get hit with a huge tax bill they weren’t expecting.
How long until we see an college athlete go down for tax evasion?
Well, when I worked, SS and Medicare were taken at time of pay. While that was a long time ago, maybe it has changed.
That would apply no matter what state the athlete is in. It would be subject to self employment tax.
I thought about that before the nil went into effect. I think most schools are giving them some guidance to begin with. However all it takes is for someone to pick the wrong advisor before they are in a Wesley Snipes situation.
Soon, thinking most 18-22 yr olds are going to be financially mature when they suddenly get a stack of cash 
There are a number of reputable athletic agents in Texas who negotiate NIL deals for college, and high school, athletes. Before an athletic agent can represent an athlete, the State of Texas requires athletic agents to obtain a certificate of registration with the Secretary of State’s office. There will always be fraudsters looking for their next mark, but if an athlete and his/her family do their due diligence, they will avoid getting taken advantage of.
I wasn’t talking about agents necessarily, but really, agents, CPAs, Lawyers, financial advisors, managers, there are bad apples everywhere unfortunately. Even with due dilligence, you can get snowed or take bad advice. It happens to people all the time, including athletes, entertainers, businessmen, etc.
Even if you are one of those professionals, and you tell your client that the investment, tax advice, or whatever they are getting is too good to be true, or a likely scam… you can’t stop someone from choosing to ignore your advice ayways. It happens all the time.
I’m sure plenty of people did their due dillegence on Allen Stanford before investing with him. We all know how that turned out.
Hell no… pay up like the rest of the people in my state or remove them from everybody’s wages.
They take it from my check on the first and the fifteenth.
Filing Schedule C as a Self-Employed person means you pay the entire 15.3% tax for Social Security and Medicare.
When you are an Employee your Employer pays 1/2 of these Taxes.
You also,of course, have to file a Federal Tax form 1040 and pay Income Taxes.
All of the above will come out of The NIL payments. Thus the “take home pay” will be substantially less.
In the NIL era, are the players considered employees and paid on a regular basis ?
Are tuition, books, fees considered payment for tax reasons ?
Athletes are considered independent contractors, not employees.
So, not only is NIL income, but tuition, fees, books and room and board are considered income…… assuming they are students.
Agree if you are in an employer / employee relationship (i.e. W-2), then SS and Medicare are withheld at time of payment. The NIL will be treated as “contract” workers (self-employed) and receive the 1099. The self-employed are responsible for their own “self-employment taxes SS and Medicare” when their tax return is prepared. They should make the estimated tax payments, paid in four installments.
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