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Replies: 19
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110%er [8047]
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NIL money
Jan 5, 2022, 7:48 PM
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I wonder if the NIL money is going to be taxed? If so, and it should, there are a lot of complications that I am sure no player has thought about. Just like the pros, not only paying federal tax they also have to pay state and local taxes. For example, a player for Miami doesn’t owe any Florida taxes (because they have no state income tax), but when they play on the road they have to pay taxes to the state where the away game was played on there portion of salary attributed to that game. Some states like Kentucky have local taxes too. So when a Clemson player making NIL money plays Louisville on the road, they might have to pay Louisville city income tax, Jefferson County income tax, State of Kentucky income tax and federal income tax! I doubt any player has thought of this. And on the flip side how is the money paid by an individual or company to a player going to be treated. Can it be deducted as a business expense? Right now IPTAY dues are NOT tax deductible. What a mess the NCAA has created!!
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Orange Blooded [4150]
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Re: NIL money
Jan 5, 2022, 8:03 PM
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IRC Section 62 states all income is taxable at the Federal level. Trust me when I say Uncle Sam will get his fair share. It's ordinary income and will be taxed by State and Cities who have a local income tax.
It's not gonna be a problem unless the income is not reported.
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110%er [8047]
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Re: NIL money
Jan 5, 2022, 8:10 PM
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Several years ago I was flying from Louisville to Atlanta and sat next to a jockey that has just won a race at Churchill Downs. He was telling me that there is a special local Churchill Downs tax district. He said at the end of the year he would owe Churchill downs local tax, city of Louisville tax, Jefferson county tax and Kentucky y income tax. These kids better make a lot of money because they are going o Ave to hire a tax consultant to keep up with all of their tax responsibilities.
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CU Guru [1920]
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Re: NIL money
Jan 5, 2022, 8:06 PM
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NIL isnt paid for playing in games. They get paid for promotional consideration but it could become a more complicated tax situation than some are used to. Thats my unprofessional opinion.
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Legend [19567]
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15.3 % self employment tax as well***
Jan 5, 2022, 8:06 PM
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110%er [6467]
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Re: NIL money
Jan 5, 2022, 8:10 PM
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I believe the income will be taxed in the state it is actually paid.
I used to work security for a man who traveled all over the world and all over the USA. He paid me in Georgia and all taxes were paid in Ga.
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110%er [8047]
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Re: NIL money
Jan 5, 2022, 8:32 PM
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Individual states are getting very aggressive about collecting money from wherever they can. Just like pro sports these kids will be well publicized and their deals will catch the attention of the tax man. An athletes Name Image and Likeness will not be worth anything unless they play. And where they play will determine where they owe taxes too…even when playing in the road.
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All-In [29036]
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I don't think that will be the case
Jan 5, 2022, 10:12 PM
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The NIL structure (to get around the only real stipulation: no pay-for-play) is that the payments are for some endorsement or activity carried on on the behalf of the paying company/entity.
So that money will be paid (and thus taxed) in the state wherein the endorsing activities take place and will carefully be structured to have nothing to do with the actual games.
At least, that'd be my guess as to how it will work itself out.
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110%er [6467]
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Re: NIL money
Jan 5, 2022, 10:30 PM
[ in reply to Re: NIL money ] |
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Do NFL players or NBA players pay tax in every state they play in?
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110%er [8047]
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Re: NIL money
Jan 6, 2022, 8:23 AM
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Yes
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Orange Blooded [3583]
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Re: NIL money
Jan 5, 2022, 8:57 PM
[ in reply to Re: NIL money ] |
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I can tell you from experience that if you work in NY even one day they will pursue "their" money aggressively, especially in NYC.
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110%er [6467]
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Re: NIL money
Jan 5, 2022, 10:32 PM
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So if the Falcons okay the Giants in NY, do the falcons players pay NY tax?
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110%er [6467]
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Re: NIL money
Jan 5, 2022, 10:33 PM
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I meant play. Can't type tonight.
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Orange Blooded [3583]
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Re: NIL money
Jan 6, 2022, 12:47 AM
[ in reply to Re: NIL money ] |
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Yes Sir, positively. If they shoot a commercial, etc - NY Taxes.
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All-In [31199]
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Re: NIL money
Jan 6, 2022, 10:15 AM
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New York or California…just another advantage for the Texas schools in regards to taxation.
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110%er [8047]
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Re: NIL money
Jan 6, 2022, 8:23 AM
[ in reply to Re: NIL money ] |
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Yes
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110%er [8518]
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Re: NIL money
Jan 5, 2022, 8:40 PM
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Oh my gosh NIL again. If any athletes earn any money they will be just like everyone else and get a W-2 or a 1099. Depending on how much they make they may or may not owe any tax just like everyone else. I would guess most would be self-employed and file accordingly.
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Letterman [290]
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Re: NIL money
Jan 5, 2022, 8:49 PM
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This is a great thread idea bc it might open up some insight into what NIL money is being paid to recruits when the stories break that they arent paying their taxes.
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Orange Blooded [3135]
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Two things for sure in life
Jan 5, 2022, 10:42 PM
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Death and Taxes. Of course Uncle Sam will get his cut.
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CU Medallion [64972]
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Oh, I will just about guar-and-dee-darned-TEE that
Jan 6, 2022, 8:29 AM
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it won't be long before SOMEBODY gets in tax trouble over this stuff. The IRS is not going to see all these millions flying around and not figure out a way to get their grubby paws on a huge chunk of it!
The trouble will come when somebody thinks they can hide some of that income from the Revenuers. Then, they will learn what Al Capone learned many years ago. You might be able to cheat the justice system a whole lot of ways, but THE TAXMAN will get his, one way or another.
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