SCOTUS rules against NCAA

[Storrs South]

 

[aburks41]

Wonder if the clerk for Gorsuch is from CT? Yale law?

Kavanaugh was the one who wrote the Storrs piece. He was a Yale guy

 

[the Q]

They finally going to start taxing scholarships?

If theyre employees that is taxable income.

you cannot separate the two and claim otherwise

 

[huskiesouth]

They finally going to start taxing scholarships?

If theyre employees that is taxable income.

you cannot separate the two and claim otherwise

Law is my business, know nada about tax law.

Is a scholarship really taxable? A student does not receive a benefit($$) but rather an expense (tuition, room, board) is waived. If you don't incur the expense you receive no benefit.

Also, is a student an employee under current IRS and NLRB definitions (the PRO Act is not yet law)? If not, the school sends a 1099 to a scholarship student as a independent contractor who files a Schedule C claiming as expenses of being a independent cpntractor/student tuition, room, board, books, etc.

 

[the Q]

Law is my business, know nada about tax law.

Is a scholarship really taxable? A student does not receive a benefit($$) but rather an expense (tuition, room, board) is waived. If you don't incur the expense you receive no benefit.

Also, is a student an employee under current IRS and NLRB definitions (the PRO Act is not yet law)? If not, the school sends a 1099 to a scholarship student as a independent contractor who files a Schedule C claiming as expenses of being a independent cpntractor/student tuition, room, board, books, etc.

Im not a tax law guy either.

but if your wan employee and given that benefit, I would think that would be taxed.

right now they are not employees

 

[Bonk]

Kinda wild every justice went to either Harvard or Yale law besides Barrett I think

 

[Fatroony5]

Law is my business, know nada about tax law.

Is a scholarship really taxable? A student does not receive a benefit($$) but rather an expense (tuition, room, board) is waived. If you don't incur the expense you receive no benefit.

Also, is a student an employee under current IRS and NLRB definitions (the PRO Act is not yet law)? If not, the school sends a 1099 to a scholarship student as a independent contractor who files a Schedule C claiming as expenses of being a independent cpntractor/student tuition, room, board, books, etc.

There are scholarships that are taxable. For instance, the Americorps scholarship (Segal AmeriCorps Education Award) is taxable, you have to declare it as income if you use more than $600 in a given year. To my knowledge, it is the only Federal Scholarship that is taxable, you receive a 1099-Misc for using it.

Id be surprised if the students were now responsible for paying the taxes on that, that’d be insane.

 

[the Q]

There are scholarships that are taxable. For instance, the Americorps scholarship (Segal AmeriCorps Education Award) is taxable, you have to declare it as income if you use more than $600 in a given year. To my knowledge, it is the only Federal Scholarship that is taxable, you receive a 1099-Misc for using it.

Id be surprised if the students were now responsible for paying the taxes on that, that’d be insane.

not really

the argument seems to be that they’re employees.

That would seem to make that a pretty obvious decision

 

[phillionaire]

not really

the argument seems to be that they’re employees.

That would seem to make that a pretty obvious decision

I was a grad student that was employed by my university as a researcher/teacher's assistant, and got a full scholarship. If I had to pay taxes on my scholarship, I would have made zero income.

 

[the Q]

I was a grad student that was employed by my university as a researcher/teacher's assistant, and got a full scholarship. If I had to pay taxes on my scholarship, I would have made zero income.

it would be the right thing to do.

 

[Guapo]

Im not a tax law guy either.

but if your wan employee and given that benefit, I would think that would be taxed.

right now they are not employees

This ruling did not make them employees.

what the hell are you even talking about

 

[phillionaire]

it would be the right thing to do.

Not really, it would make it hard for anyone that's not independently wealthy to go into graduate programs.

 

[Fatroony5]

not really

the argument seems to be that they’re employees.

That would seem to make that a pretty obvious decision

There’s no way the students are going to be liable to pay taxes on their scholarship, I don’t see how that’s feasible. How are they going to repay thousands of dollars in taxes every year? I’m trying to imagine how a track and field athlete who maybe makes a little off NIL would be able to pay taxes on their scholarship, it’d be a nightmare.

 

[nelsonmuntz]

To those shouting at Q right out of their butthole, you don't need to have an opinion on this. The IRS has already covered it.

Topic no. 421, Scholarships, fellowship grants, and other grants | Internal Revenue Service

Topic No. 421 Scholarships, Fellowship Grants, and Other Grants

www.irs.gov

It looks like any compensation above tuition is going to be taxable.

 

[nelsonmuntz]

This is a dark day for any athlete that has a scholarship in a non-revenue sport. They are screwed. It is going to be a lot more expensive to carry them now than it used to be, and schools will start slashing costs.

I also question what the top academic schools that are D1 will do. Stanford, Northwestern, Duke, Vanderbilt, Georgetown and Rice consider the Ivies and the UAA schools their competition, not NC State or Oregon State. It will be interesting to see how far they are willing to go to compete with other P1 schools, or if they will pull out of the conferences eventually.

 

[Psolo12]

This is a dark day for any athlete that has a scholarship in a non-revenue sport. They are screwed. It is going to be a lot more expensive to carry them now than it used to be, and schools will start slashing costs.

I also question what the top academic schools that are D1 will do. Stanford, Northwestern, Duke, Vanderbilt, Georgetown and Rice consider the Ivies and the UAA schools their competition, not NC State or Oregon State. It will be interesting to see how far they are willing to go to compete with other P1 schools, or if they will pull out of the conferences eventually.

Schools have largely already been slashing non-revenue sports.

 

[navery12]

This ruling did not make them employees.

what the hell are you even talking about

He's really taking his Q username to heart these days

 

[Guapo]

To those shouting at Q right out of their butthole, you don't need to have an opinion on this. The IRS has already covered it.

Topic no. 421, Scholarships, fellowship grants, and other grants | Internal Revenue Service

Topic No. 421 Scholarships, Fellowship Grants, and Other Grants

www.irs.gov

It looks like any compensation above tuition is going to be taxable.

Why aren’t room and board, the living stipend and other items “above” tuition not taxed now and how does today’s ruling change the status quo as it relates to those items?

 

[Chin Diesel]

Why aren’t room and board, the living stipend and other items “above” tuition not taxed now and how does today’s ruling change the status quo as it relates to those items?

I don't on w for sure but I do know I get up to about $7k in tuition payments before it goes from being a non-taxable benefit and it turns in to taxable income.

 

[CL82]

Kavanaugh was the one who wrote the Storrs piece. He was a Yale guy

 

[Guapo]

Why aren’t room and board, the living stipend and other items “above” tuition not taxed now and how does today’s ruling change the status quo as it relates to those items?

So, actually they are taxable (see below).

Again, I ask how does today’s ruling change the status quo when it comes to these items?

 

[Guapo]

SMH, but laughing.

SMHBL

 

[Chin Diesel]

"Nowhere else in America can businesses get away with agreeing not to pay their workers a fair market rate on the theory that their product is defined by not paying their workers a fair market rate."

Boom. Mic drop.

 

[Chin Diesel]

So, actually they are taxable (see below).

Again, I ask how does today’s ruling change the status quo when it comes to these items?

I said this in another thread a few months ago.

We are transitioning from athletes being declared ineligible for illegal benefits to athletes being ineligible for going to jail for tax evasion.

Every university better have a well-staffed tax preparation and assistance dept to keep athletes eligible.

 

[Guapo]

I said this in another thread a few months ago.

We are transitioning from athletes being declared ineligible for illegal benefits to athletes being ineligible for going to jail for tax evasion.

Every university better have a well-staffed tax preparation and assistance dept to keep athletes eligible.

With the forthcoming NIL rules, many schools (including UConn - there was an article a few days back) have set up offices to help athletes navigate these waters, or outsourced the help to law firms. I assume tax stuff would be part of that.