NIL question

[taper]

Not sure if it is the same for NIL but pro athletes are considered entertainers and their weekly check is taxed based on the location of the performance. So, say you are in the made up conference and got $100k NIL deal (ha... but the numbers make it simple) and if you play 5 games in Tennessee, 3 in GA and 2 in SC....you would be taxed nothing on half of your money (no state income tax in TN) but you would owe on $30k in GA and $20k in SC...this gets really complicated.

Your weekly game check is taxed in the state you play in, but I'm pretty sure endorsements are in your home state, or possibly in the state you film commercials in. I would expect NIL to be your single home state.

[ElCid]

Your weekly game check is taxed in the state you play in, but I'm pretty sure endorsements are in your home state, or possibly in the state you film commercials in. I would expect NIL to be your single home state.

Why? If a player earns it for a season, year? It must therefore be included each week/month, so they will be on the hook for each week of the season. Any out of state games will simply be a portion of the weekly, monthly, or yearly pay. Or will their "labor" somehow cease during away games? Everyone who has been advocating and cheerleading for this has to take the good with the bad. With how other players and coaches and business travelers have to deal with this, seems like players will be on the hook. But it will largely depend on "how" players are paid. But expect the tax men to be watching for creative tax avoidance schemes.

[taper]

Why? If a player earns it for a season, year? It must therefore be included each week/month, so they will be on the hook for each week of the season. Any out of state games will simply be a portion of the weekly, monthly, or yearly pay. Or will their "labor" somehow cease during away games? Everyone who has been advocating and cheerleading for this has to take the good with the bad. With how other players and coaches and business travelers have to deal with this, seems like players will be on the hook. But it will largely depend on "how" players are paid. But expect the tax men to be watching for creative tax avoidance schemes.

I've earned income in multiple states before. I don't average my total income between them, it's split on what's earned where. A NFL player's team income and endorsement income are from legally completely different sources.

[ElCid]

I've earned income in multiple states before. I don't average my total income between them, it's split on what's earned where. A NFL player's team income and endorsement income are from legally completely different sources.

Yeah I get that. But the gray areas is where the dirty details are. Player gets a NIL deal for being on team. He gets paid x amount per month. If he goes to a different state and has his picture taken or is filmed (at a game, practice, or recruiting use) by NIL source ... oops. If a CEO travels to another state and is simply photographed at a company event, he is on the clock for taxes in that state. What about out of state players still maintaining residency in their home state? Player from NY, playing and getting NIL in Florida. As a NY resident, he will owe taxes to NY, not Florida. It's going to be a mess for some kids. And if a link can be established between recruiting and NIL, a court might be inclined to treat it as all income and simply a shell game source and a pay for play. And then there are those who are not talking about NIL at all, but regular pay for players. Then it's game on, no questions asked for multi state taxes. It won't be clean at all in any event.

[clenz]

Yeah I get that. But the gray areas is where the dirty details are. Player gets a NIL deal for being on team. He gets paid x amount per month. If he goes to a different state and has his picture taken or is filmed (at a game, practice, or recruiting use) by NIL source ... oops. If a CEO travels to another state and is simply photographed at a company event, he is on the clock for taxes in that state. What about out of state players still maintaining residency in their home state? Player from NY, playing and getting NIL in Florida. As a NY resident, he will owe taxes to NY, not Florida. It's going to be a mess for some kids. And if a link can be established between recruiting and NIL, a court might be inclined to treat it as all income and simply a shell game source and a pay for play. And then there are those who are not talking about NIL at all, but regular pay for players. Then it's game on, no questions asked for multi state taxes. It won't be clean at all in any event.

All of this is where the "JUST PAY TAXES. HAVE SOME ACCOUNTABILITY" really starts to break down.

We have the biggest "JUST PAY TAXES. HAVE SOME ACCOUNTABILITY" people on the planet here who have just known, in their DNA, that taxes have to be paid a certain way depending how you get paid, sitting here debating back and forth on how taxesw ould need to be paid or not paid or based on where. Yet the expectation is just these 18-20 year olds who have likely never had more than a few hundred at a time to be accountable for is expected just to instantly know this.

Plus the speed at which NIL is evolving and expecting these students to just instantly know all of this.

Are we starting to see where it's not entirely just "PAY YOUR TAXES" and it goes deeper than that?

As CH said, "those in power don't want you to know". He's right, and I said the same earlier. Tax code and tax law are intentionally as complicated as possible. They spend hundreds of millions of dollars a year trying to get congress to pass new tax laws making it as hard as possible for people to file on their own. Hell, a couple of them have tried to make it illegal/impossible for people to file on their own without paying exorbitant costs in doing so.

[Tribe4SF]

All of this is where the "JUST PAY TAXES. HAVE SOME ACCOUNTABILITY" really starts to break down.

We have the biggest "JUST PAY TAXES. HAVE SOME ACCOUNTABILITY" people on the planet here who have just known, in their DNA, that taxes have to be paid a certain way depending how you get paid, sitting here debating back and forth on how taxesw ould need to be paid or not paid or based on where. Yet the expectation is just these 18-20 year olds who have likely never had more than a few hundred at a time to be accountable for is expected just to instantly know this.

Plus the speed at which NIL is evolving and expecting these students to just instantly know all of this.

Are we starting to see where it's not entirely just "PAY YOUR TAXES" and it goes deeper than that?

As CH said, "those in power don't want you to know". He's right, and I said the same earlier. Tax code and tax law are intentionally as complicated as possible. They spend hundreds of millions of dollars a year trying to get congress to pass new tax laws making it as hard as possible for people to file on their own. Hell, a couple of them have tried to make it illegal/impossible for people to file on their own without paying exorbitant costs in doing so.

What we've done with the 1693 Alliance at W&M is have an athlete-alum who is a tax accountant prepare a handout for all NIL recipients outlining tax considerations. He will also offer periodic workshops for recipients to get more personalized tax advice. If schools and collectives are truly interested in enhancing athletes' opportunities they need to make sure athletes have the knowledge to deal with those opportunities.

[FUBeAR]

What we've done with the 1693 Alliance at W&M is have an athlete-alum who is a tax accountant prepare a handout for all NIL recipients outlining tax considerations. He will also offer periodic workshops for recipients to get more personalized tax advice. If schools and collectives are truly interested in enhancing athletes' opportunities they need to make sure athletes have the knowledge to deal with those opportunities.

Are they provided with 1099’s for the value of the Tax Consultation they receive?

[Tribe4SF]

1693 Alliance website.

1693 Alliance | Support William & Mary Student-Athletes

[Milktruck74]

What we've done with the 1693 Alliance at W&M is have an athlete-alum who is a tax accountant prepare a handout for all NIL recipients outlining tax considerations. He will also offer periodic workshops for recipients to get more personalized tax advice. If schools and collectives are truly interested in enhancing athletes' opportunities they need to make sure athletes have the knowledge to deal with those opportunities.

They are not!!!

[FUBeAR]

They are not!!!

Nope - they are interested in the ego stroke they get when laundry in the colors they prefer defeats other piles of laundry.