NIL Income: What Student Athletes Need to Know About Taxes!

Student athletes will soon head back to school, and some will earn income from the use of their name, image, and likeness (NIL). This form of compensation is fairly new. Many student athletes don’t realize that it’s considered self-employment income, subject to Social Security and Medicare tax, federal and possibly state income tax. This applies to cash and noncash payments, such as merchandise or gift cards. NIL earnings typically have no income tax withheld, so you may need to make estimated tax payments to avoid penalties and interest. Whether or not you receive a Form 1099 for the payments, you must report the income. Here’s more: https://bit.ly/4fEWbfc, or contact us with questions.