{"id":249,"date":"2026-04-17T04:24:16","date_gmt":"2026-04-17T04:24:16","guid":{"rendered":"https:\/\/twopercentconsulting.com\/?p=249"},"modified":"2026-04-21T03:43:24","modified_gmt":"2026-04-21T03:43:24","slug":"nil-tax-series-what-you-should-be-aware-af-free-stuff-aint-free-part-2-of-10","status":"publish","type":"post","link":"https:\/\/twopercentconsulting.com\/en\/nil-tax-series-what-you-should-be-aware-af-free-stuff-aint-free-part-2-of-10\/","title":{"rendered":"NIL Tax Series: What You Should Be Aware Of &#8211; FREE STUFF AIN\u2019T FREE (Part 2 of 10)"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Student\u2011athletes think NIL is only taxable when CASH MONEY hits their account. Nope!<br><br>If you receive anything of value in exchange for a service (e.g., a post, appearance, promotion, etc.) That\u2019s taxable income.<br><br>Shoes? Taxable.<br>Gear? Taxable.<br>Hotel stays? Taxable.<br>A \u201cgifted\u201d car? VERY taxable.<br><br>What to be aware of:<br><br>Fair Market Value \u2013 The IRS taxes the value of goods\/services you received in the year you received them. Not what you think it\u2019s worth.<br><br>State and Local Tax &#8211; yes you have to pay the federal government. You also have to pay the state (some states not included) and even your local government. Athletes must file state tax returns based on residency and where the money was earned.<br><br>1099s &#8211; even if you didn\u2019t receive a 1099 doesn\u2019t mean you shouldn\u2019t report it. Company\u2019s aren\u2019t going to issue a 1099 on payments under $600.<br><br>Recordkeeping \u2013 because NIL income is taxable you should be meticulously keeping records and receipts of all NIL related activities. If you don\u2019t track it, you\u2019ll be guessing at tax time.<br><br>We love free stuff but remember the government wants its cut. Understand free ain\u2019t free! This is something you really should seek out a tax advisor or CPA on.<\/p>","protected":false},"excerpt":{"rendered":"<p>Student\u2011athletes think NIL is only taxable when CASH MONEY hits their account. Nope! If you receive anything of value in exchange for a service (e.g., a post, appearance, promotion, etc.) That\u2019s taxable income. Shoes? Taxable.Gear? Taxable.Hotel stays? Taxable.A \u201cgifted\u201d car? VERY taxable. What to be aware of: Fair Market Value \u2013 The IRS taxes the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"<!-- wp:paragraph -->\n<p>Student\u2011athletes think NIL is only taxable when CASH MONEY hits their account. Nope!<br><br>If you receive anything of value in exchange for a service (e.g., a post, appearance, promotion, etc.) That\u2019s taxable income.<br><br>Shoes? Taxable.<br>Gear? Taxable.<br>Hotel stays? Taxable.<br>A \u201cgifted\u201d car? VERY taxable.<br><br>What to be aware of:<br><br>Fair Market Value \u2013 The IRS taxes the value of goods\/services you received in the year you received them. Not what you think it\u2019s worth.<br><br>State and Local Tax - yes you have to pay the federal government. You also have to pay the state (some states not included) and even your local government. Athletes must file state tax returns based on residency and where the money was earned.<br><br>1099s - even if you didn\u2019t receive a 1099 doesn\u2019t mean you shouldn\u2019t report it. Company\u2019s aren\u2019t going to issue a 1099 on payments under $600.<br><br>Recordkeeping \u2013 because NIL income is taxable you should be meticulously keeping records and receipts of all NIL related activities. If you don\u2019t track it, you\u2019ll be guessing at tax time.<br><br>We love free stuff but remember the government wants its cut. Understand free ain\u2019t free! This is something you really should seek out a tax advisor or CPA on.<\/p>\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-249","post","type-post","status-publish","format-standard","hentry","category-nil-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>NIL Tax Series: What You Should Be Aware Of - FREE STUFF AIN\u2019T FREE (Part 2 of 10) - Two Percent<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/twopercentconsulting.com\/en\/nil-tax-series-what-you-should-be-aware-af-free-stuff-aint-free-part-2-of-10\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NIL Tax Series: What You Should Be Aware Of - FREE STUFF AIN\u2019T FREE (Part 2 of 10) - Two Percent\" \/>\n<meta property=\"og:description\" content=\"Student\u2011athletes think NIL is only taxable when CASH MONEY hits their account. Nope! If you receive anything of value in exchange for a service (e.g., a post, appearance, promotion, etc.) That\u2019s taxable income. Shoes? Taxable.Gear? Taxable.Hotel stays? Taxable.A \u201cgifted\u201d car? VERY taxable. 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