1099 vs. W‑2
Athletes listen up!! Both earn $100,000 in 2025. The tax outcomes are very different.
A lot of people assume $100k is $100k.
But how you earn it, completely changes your tax bill, especially in California.
1099
A 1099 worker pays both the employer and employee share of payroll taxes.
Estimated Taxes: Self‑Employment Tax (15.3%) ~$14,129;
Federal Income Tax ~$9,000–$11,000;
California Income Tax ~$3,000–$5,000.
Total Estimated Taxes: ~$25,000–$30,000+
1099 workers can deduct legitimate business expenses, which can reduce taxable income and lower the overall tax burden. That’s why record keeping is important.
W-2
A W‑2 worker only pays the employee half of payroll taxes, the employer covers the other half.
Estimated Taxes: FICA (7.65%) → $7,650; Federal Income Tax ~$12,000–$14,000; California Income Tax ~$5,000–$6,500;
CA SDI → ~$1,000+.
Total Estimated Taxes: ~$20,000–$25,000
Two people can earn $100,000, but the 1099 student athlete will owe thousands more in taxes, especially in California. This matters for contractors, creators, and student‑athletes navigating NIL. Understanding the tax structure is just as important as understanding the income.
These numbers are estimates only and should not be taken as tax or legal advice. Actual tax liability depends on filing status, deductions, credits, and individual circumstances. Always consult a qualified tax professional.
