AROUND NIL THIS WEEK | NOV 18, 2024
- Golf NIL
- Nov 18, 2024
- 2 min read
Updated: Feb 28
Nov 19, 2024—Ohio Gov. Mike DeWine has signed an executive order allowing colleges to directly pay student-athletes for their NIL. Effective immediately, the move positions Ohio’s institutions to stay competitive as the NCAA works toward a broader revenue-sharing settlement. Previously, NIL payments were limited to third-party deals like sponsorships and collectives. Now, colleges can offer direct compensation while adhering to the order’s rule that state funds cannot be used. The measure is temporary, expiring once the proposed House settlement becomes fully operational, signaling Ohio’s proactive stance in an evolving college sports landscape. MORE
Sipa USA/Alamy Live News
Nov 22, 2024—As college athletes capitalize on NIL opportunities, many overlook tax obligations. Unlike traditional employment, NIL payments often lack tax withholding, leaving athletes responsible for setting aside funds. For instance, a $1 million NIL deal could incur a $370,000 federal tax bill, due by April 15, 2025. Without proper guidance, athletes risk accumulating significant tax debt, especially if they don't advance to professional leagues. This emerging issue underscores the need for financial education to help athletes manage earnings and comply with tax laws. MORE
TurboTax NIL tax guidelines: 1) Athletes who earn NIL income that exceeds the financial support they receive from their parents may no longer be classified as dependents. 2) Earnings from NIL sponsorships can affect eligibility for financial aid or scholarships. 3) The IRS considers NIL income to be self-employment income. 4) Athletes should receive a Form 1099-NEC for payments over $600. 5) Earning income from different states could require multiple state tax filings. MORE
