If you\u2019re making consistent money through NIL, you need to see start thinking of yourself as a business. And just like any business, you need to be thinking about tax compliance, documentation, risk, and mitigation.
We\u2019ve all seen the long list of athletes and entertainers who ran into civil or criminal tax issues. It doesn\u2019t take much to end up on the wrong side of that list.
And let\u2019s be honest\u2026
\u201cI didn\u2019t know I had to pay taxes\u201d or \u201cI forgot\u201d is not an acceptable answer for the IRS or any state taxing authority.
Things to be aware of:
You\u2019re a Business \u2013 NIL income is self\u2011employment income. That means you\u2019re responsible for tracking it, reporting it, and paying taxes on it.
IRS Expectations \u2013 the IRS expects accuracy and compliance. \u201cI didn\u2019t know\u201d won\u2019t save you from penalties, interest. The IRS doesn\u2019t play about the money!
Multiple Income Streams \u2013 Camps, sponsorships, appearances, social media, brand deals, each one is its own income source. You need to track them accurately and separately. You should have an efficient way to track and categorize all NIL deals.
Documentation Matters \u2013 keep receipts! no receipts, no deductions. If you can\u2019t prove it, you can\u2019t claim it. Simple as that. Say yes to the receipt!
Businesses keep records, tax plan, and stay compliant. Student-athletes earning NIL money need to do the same. This is an area that I would recommend consulting with a CPA, tax advisor, or attorney. Accurate record keeping and work papers is a must if you want to grow your brand into a scalable business.<\/p>","protected":false},"excerpt":{"rendered":"
If you\u2019re making consistent money through NIL, you need to see start thinking of yourself as a business. And just like any business, you need to be thinking about tax compliance, documentation, risk, and mitigation. We\u2019ve all seen the long list of athletes and entertainers who ran into civil or criminal tax issues. It doesn\u2019t […]<\/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":"","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-288","post","type-post","status-publish","format-standard","hentry","category-nil-tax"],"yoast_head":"\n