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Post by njvsuperman on Apr 29, 2024 10:17:25 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well.
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Post by standiego on Apr 29, 2024 10:41:08 GMT -8
would hope that the IRS is getting involved with all the NIL money being thrown around
Not sure what records are being kept
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Post by FULL_MONTY on Apr 29, 2024 11:11:00 GMT -8
It is income and I am sure the IRS is going to get involved. The States will be getting involved as well, they will questtion where the income was generated and whether they should get a slice.
A MLB Baseball player files a crap load of State Income ax returns.
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Post by bobcooper84 on Apr 29, 2024 11:12:03 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well. I'm confused! Since when did the IRS ban corporations from writing off advertising expenses in the form of billboards or special event services?  |
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Post by njvsuperman on Apr 29, 2024 11:14:34 GMT -8
Yeah...I'm definitely not a big tax person as I believe the government wastes most of the revenue they intake, but I'm sure at some point in time there will be a big focus on what is being written off by the "sender" of funds, and if the players are really reporting / paying taxes on everything they are collecting which I believe they would also have the pay both parts of Social Security as an independent contractor.
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Post by njvsuperman on Apr 29, 2024 11:19:23 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well. I'm confused! Since when did the IRS ban corporations from writing off advertising expenses in the form of billboards or special event services? They did not, but I believe the value in advertising is supposed to be anticipated to be a good business expense (won't always be the case, but at least they think it should be when they start the deal). So you can't just give someone $1M to rep your car dealership if it's only anticipated to bring in $50K in extra revenue (random numbers as examples) and write off as a business expense. There are definitely going to be many small / medium type businesses where the owner really likes a program and gives a bunch of money as "advertising" when it's really just "pay for play" and will be pretty easy to figure it out. |
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Post by FULL_MONTY on Apr 29, 2024 11:26:56 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well. I'm confused! Since when did the IRS ban corporations from writing off advertising expenses in the form of billboards or special event services? It's for sure an expense, the question will be whether they should be withholding taxes from the NIL Payments. That will be facts and circumstances. |
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Post by FULL_MONTY on Apr 29, 2024 11:29:56 GMT -8
I'm confused! Since when did the IRS ban corporations from writing off advertising expenses in the form of billboards or special event services? They did not, but I believe the value in advertising is supposed to be anticipated to be a good business expense (won't always be the case, but at least they think it should be when they start the deal). So you can't just give someone $1M to rep your car dealership if it's only anticipated to bring in $50K in extra revenue (random numbers as examples) and write off as a business expense. There are definitely going to be many small / medium type businesses where the owner really likes a program and gives a bunch of money as "advertising" when it's really just "pay for play" and will be pretty easy to figure it out. I don't believe there is any limitation that you describe, the IRS is going to be taxing the NIL payment and will get theirs one way or another. |
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Post by bobcooper84 on Apr 29, 2024 11:55:30 GMT -8
I get all of that....
Just being a little facetious as the tedious sports schedule drifts into summer programming!
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Post by AzTex on Apr 29, 2024 12:30:22 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well. Businesses, include the cooperatives, should be filing 1099 forms with the IRS for NIL payments. The players will be contacted by IRS if they don't include that income. |
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Post by AzTex on Apr 29, 2024 13:37:04 GMT -8
I'm confused! Since when did the IRS ban corporations from writing off advertising expenses in the form of billboards or special event services? It's for sure an expense, the question will be whether they should be withholding taxes from the NIL Payments. That will be facts and circumstances. The vast majority will be considered independent contractors, not employees. Therefore there will be no withholding. Some could be considered employees depending on what was expected of the athlete and the degree of control by the employer. The athletes should be filing estimated payments instead of withholding, but the only penalty is basicly interest on what you should have paid in during the year.
Most of the are going to be shocked at how much in taxes, both income and self employment (social security), they will have to pay with their tax returns.
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Post by standiego on Apr 29, 2024 15:51:12 GMT -8
think they released the 2024 tax brackets would be interesting to see if the IRS sends out information to College athletes
For Single Filers for 2024
Earn $11,601 -$ 47,150 you are at 12 %
Earn 47,151 -100,525 you are at 22 %
Earn 100, 526 -191,950 - you are at 24%
Earn 191,951- 243,725 - you are at 32%
Earn 243,725 - 609,350 - you are at 35%
Over 609,350 37%
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Post by AzTex on Apr 29, 2024 16:18:57 GMT -8
think they released the 2024 tax brackets would be interesting to see if the IRS sends out information to College athletes For Single Filers for 2024 Earn $11,601 -$ 47,150 you are at 12 % Earn 47,151 -100,525 you are at 22 % Earn 100, 526 -191,950 - you are at 24% Earn 191,951- 243,725 - you are at 32% Earn 243,725 - 609,350 - you are at 35% Over 609,350 37% IRS won't treat the athletes any different than anyone else. They will have access to the same information as any taxpayer. |
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Post by montymontezuma on Apr 29, 2024 17:17:03 GMT -8
Everyone will get a 1099 for their NIL money. Since they are not employees, they will also be subject to self employment tax @ 15.3%. I can see a lot of kids just going out and spending the money and then getting hit with tax bills. Almost all individuals are not married and do not have any write offs.
I just did some quick math in my head. If you make about $200k from NIL, here is your tax bill. I did not take into case the standard deduction which is about 14k? the individual will owe the feds about $40k in federal taxes, add in, self employment and that adds another $30k in federal taxes. I am guessing the state tax would be around $14k. So that is approximately $84k in taxes. That leaves $116k. I hope someone is providing counseling to these kids, otherwise there are going to be a lot of players who will spend it as fast as it comes in and not have the ability to pay their tax bills. I am sure there will be plenty of these stories in the next couple of years.
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Post by hoobs on Apr 29, 2024 17:35:21 GMT -8
Everyone will get a 1099 for their NIL money. Since they are not employees, they will also be subject to self employment tax @ 15.3%. I can see a lot of kids just going out and spending the money and then getting hit with tax bills. Almost all individuals are not married and do not have any write offs. I just did some quick math in my head. If you make about $200k from NIL, here is your tax bill. I did not take into case the standard deduction which is about 14k? the individual will owe the feds about $40k in federal taxes, add in, self employment and that adds another $30k in federal taxes. I am guessing the state tax would be around $14k. So that is approximately $84k in taxes. That leaves $116k. I hope someone is providing counseling to these kids, otherwise there are going to be a lot of players who will spend it as fast as it comes in and not have the ability to pay their tax bills. I am sure there will be plenty of these stories in the next couple of years. 100% this will be happening |
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Post by mfaulkhof2011 on Apr 29, 2024 19:30:43 GMT -8
And it won't matter that Butler is playing in Kentucky because California will come gunning for you too. An article years ago showed how much ARod had to pay just to play 3 games in Anaheim and Oakland. It was brutal. Not sure the tax situation in KY but if it is a tax free state he needs to transfer everything to that state now and renounce his California residency ASAP.
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Post by survalli on Apr 29, 2024 22:22:04 GMT -8
And it won't matter that Butler is playing in Kentucky because California will come gunning for you too. An article years ago showed how much ARod had to pay just to play 3 games in Anaheim and Oakland. It was brutal. Not sure the tax situation in KY but if it is a tax free state he needs to transfer everything to that state now and renounce his California residency ASAP. California is better at collecting taxes and going after people than the IRS. |
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NIL Taxes
Apr 29, 2024 23:44:09 GMT -8
via mobile
Post by aztecdan8 on Apr 29, 2024 23:44:09 GMT -8
Even though NIL is "above board", will the next advantage to be gained in this ridiculous "arms race" ... suitcases of unreported cash? Seriously.
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Post by MarshallU on Apr 30, 2024 9:56:44 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well. why would they not be involved already? it's income. |
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Post by njvsuperman on Apr 30, 2024 10:38:26 GMT -8
I'm curious how long before the IRS gets super involved in NIL / Taxes. I'm guessing there are a lot of players that are not paying what they should be in taxes along with many corporations that are writing off NIL payments when they really should not be. Also curious if scholarships will start being taxed as well. why would they not be involved already? it's income. More meaning caring to enforce it---Have a hard time believing all (or a majority) of NIL funds going to players are really being properly reported. I could be wrong, just guessing there are going to be a lot of "missed" estimated tax payments / social security and such----Hopefully not as if they do, they might be paying for it for years down the road. |
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