Sharing experiences is undoubtedly one of the best ways to learn when navigating something new. As student-athletes navigate the new waters of NIL (Name, Image and Likeness) it is a great opportunity to gain insight from one another.
As an Enrolled Agent and tax expert for TurboTax, I had a chance to sit down with the CEO of INFLCR Jim Cavale, student-athletes Margzetta Frazier gymnast at UCLA and Julian Strawther a basketball guard at Gonzaga to discuss all things taxes for NIL. Frazier and Strawther were able to share personal wins they have scored in NIL and some of the practices they have implemented to help them manage their NIL deals.
Watch the full roundtable discussion below to learn helpful tips about your taxes – plus, get answers to real questions submitted by student-athletes.
Here are some key takeaways from our talk that student-athletes should keep top of mind for their taxes and NIL deal are:
- Make sure to complete a Form W-9 properly. A Form W-9 collects information about you when paying you as an independent contractor. At the end of the year, each company will use this information to issue you a 1099 and provide a copy to the IRS. It may be a good idea to have a completed W-9 handy to give to companies you work with.
- Keep track of all your business-related expenses that you incurred as it relates to your NIL deals – think airfare, hotel stays, website fees. Since you pay taxes on your net income (gross income minus your expenses related to your NIL activities) these expenses will help lower your taxes.
- Be responsible in how you save some of the money from your NIL deals so that you are prepared to make quarterly estimated payments or pay taxes come tax time.
- Have trusted people who can help you navigate your deals and contracts. This could include parents, managers, and tax experts.
- If you earned more than $400 from NIL activities (or other avenues) last year you may need to file taxes. This not only includes the value of cash payments but also crypto and free products or gifts.
While you balance your school work, land NIL deals, and focus on your sport, let TurboTax handle your taxes for you. Meet with a dedicated tax expert to get your questions answered and your taxes done in one meeting.