Most athletes won’t make enough NIL dollars to incur any tax liability. Those who do exceptionally well will hire professionals to provide advice and do their taxes. The rest will fill out a 1040. No harm, no foul.
https://twitter.com/RossDellenger/status/1462083258724855812
https://twitter.com/RossDellenger/status/1462084093215223822
https://twitter.com/RossDellenger/status/1462089099649503232
So nothing changes . . . . .
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Hence the reason why UT and OU moved
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I thought HBCU’s were the have-nots. Apparently, they have a lot.
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THIS HAS NOTHING TO DO WITH NIL This is clearly the school paying the athletes directly. Are you expecting me to believe that THIS the following is going to happen?
"Academically eligible…they say. What “criteria” would that be? Not only this should be investigated but if it does happen imagine the future.
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If that HBCU NIL Deal should be investigated then all schools need to be investigated and the NCAA is not going to touch it. It’s up to the states and they are not going to investigate it. Even congress won’t touch it.
The toothpaste is out of the tube and you cannot put it back in.
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Sadly if those companies go bankrupt or change philosophies do players transfer abruptly since that was the pitch to begin with
I think it’s great when an alum who makes it big can make that kind of donation to their school. I like Tito’s and I like the people that represent the company. Been helpful to me with events.
The fact that it was given to UT won’t make me change my buying habits. I don’t wish to be part of the cancel culture
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Chris trying to stick out and make a rational statement. It’s appreciated…Life is too short!
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It would be interesting to have (already have it?) a list of U of H owned businesses.
Besides Landrys what other “notables” name(s) are associated with us?
Pretty sure this was the plan all along. We can pay you and you don’t have to sit out a year. Come on dooowwwwnnnnn!
I find all of this highly interesting!
By the by the simple way to handle the payments is to make the Student an Employee of a business then withhold taxes as they get paid. That becomes standard W-2 income.
Each person has a “Standard Deduction” of about $13,000. You then combine their W-2 pay plus the taxable value of Scholarships/Room and Board and create a 1040 Tax Return. Just like we all do.
Since all Universities will have Alums who are CPA’s they become part of the situation.
Could be a win-win.
Not too sure about any “taxable value” of college scholarships/Room & Board.
In the past, have college student athletes at private schools such as SMU, TCU and Baylor been required to file a personal income tax return and report the $50,000+ annual value of their athletic scholarship(s)? I’ve never heard anything about that - so I really don’t think that’s the case.
I know that prior case law had held that the value of scholarships, including athletic scholarships, isn’t taxable income.
However, this whole NIL thing is a completely new and separate conversation.
It seems to me that that would be taxable income, but we’ll have to see how the case law develops.
Room and Board values are taxable.
Since they are valued below the standard deduction levels no filing of a Tax Return is required.
But add in the NIL amounts plus Room and Board and, voila, you get a Tax Return.
I agree - it really has to be taxable. Even if the payments are coming from the school, they’re acting as a “middle-man” to facilitate these payments. They should withhold taxes, if they’re not doing that already.
Now, if the school has a pool of money and has control over how to dispense it, then it could look more like a scholarship.
Someone noted the issue with asking donors for increasing amounts of money for scholarships, all while these highly-publicized NIL deals are coming to the players in addition to the scholarships. That’s going to become a real problem. Many donors will balk at this arrangement. Some will choose to pay players directly, and some will stop donating altogether, but I can see the net result being that the general donation pool shrinks considerably.
The biggest “reach” is without a doubt SEC schools considering “paying” students for “reaching” academic standards.
You all remember when Dexter Manley could not read…but he got his degree.