Financial

What are the tax implications for Name Image Likeness (NIL)?

NAME, IMAGE & LIKENESS (NIL)

Since 2021, the NCAA has allowed student athletes the opportunity to benefit from their Name, Image, and Likeness (NIL) without jeopardizing their NCAA eligibility. That’s why we’re providing free resources to help students understand the impact of receiving NIL payments.

WHAT’S THE MINIMUM TO QUALIFY?

Student athletes that receive cash or services and/or items that value $600 or more will be required to file their taxes.

HOW DOES THE IRS KNOW ABOUT YOUR NIL INCOME?

The person or business paying the student athlete will issue a 1099 of some kind, all of which are subject to self-employment tax.

WHAT ARE MY OPTIONS FOR FILING TAXES?

Lowe Levinson Financial Solutions is ready to help student athletes tackle their tax problems in-person, online, or with a remote tax preparer.

WHAT COUNTS AS NIL INCOME?

Student athletes can gain income through NIL in a number of different ways. They can profit off endorsements, apparel sales, corporate partnerships, charitable appearances, teaching camps, and starting their own businesses. They can also be paid for developing their own merchandise, promoting products or services, and appearing at events due to their personal celebrity. “NIL rights” allow college athletes to profit from sponsorship deals, autograph fees, social media, promotional appearances, and marketing their own brands. Social media and brand endorsement deals are the most popular revenue source for college athletes.