What the heck? | The Boneyard
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What the heck?

Do college athletes have to pay a percentage of their NIL for away games? Is it more beneficial for them to play away games in states such as Texas or Florida without state income taxes? Or is NIL not affected by where games are played?
 
We gotta do the Pizza Capital thing.

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HCCForever said:
Do college athletes have to pay a percentage of their NIL for away games? Is it more beneficial for them to play away games in states such as Texas or Florida without state income taxes? Or is NIL not affected by where games are played?
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Looks like it. It's a very complicated business and they should be receiving 1099s for all of their contract income

State taxes​

Keep track of the locations where you perform NIL contract services, because you may owe state tax to a state where you earn income from NIL activities.

Consider consulting a CPA or other tax professional before accepting an NIL contract to understand state filing impacts and to help you meet state filing requirements.

Name, image and likeness income | Internal Revenue Service

If you are a student-athlete and you receive any monetary or financial gain, in cash or non-cash, from a transaction in which you benefit from the use of your name, image or likeness, that gain is NIL income.
www.irs.gov www.irs.gov
 
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HCCForever said:
Do college athletes have to pay a percentage of their NIL for away games? Is it more beneficial for them to play away games in states such as Texas or Florida without state income taxes? Or is NIL not affected by where games are played?
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If they don't now they will soon. I don't see any way NIL can be defended as not being earned as a participant in the games they play (even if they may miss some games). At some point every tax state will want their share.
 
FfldCntyFan said:
If they don't now they will soon. I don't see any way NIL can be defended as not being earned as a participant in the games they play (even if they may miss some games). At some point every tax state will want their share.
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Think this was a topic a while back, and I believe the consensus was these kids might have a rude tax awakening down the road. Penalties interest and the initial amount
 
Makes sense. There can be a large tax bill for states with income tax.
I'd be doing the same if I were those schools.

The Cal Berkeley one is a bit odd.
 
Chin Diesel said:
Makes sense. There can be a large tax bill for states with income tax.
I'd be doing the same if I were those schools.
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Not quite 35 years ago (spring 1991) I read about California imposing state income tax on visiting baseball players (I'm an accountant, I have to read crap like that). The atate of California, going after major league baseball was what led to all professional athletes having to have taxes imposed by multiple states. California unwittingly hurt themselves on this however as while the were able to collect income tax from players on teams from other states as a percentage of games those teams played in California, they lost the ability to collect taxes on the games their teams played outside of California (50% of every team's ganes are on the road. Only five teams are located in California).

What they initial thought would be a revenue windfall ended up being basically revenue neutral, while creating quite a bit more work to track and file everything.

Chin Diesel said:
The Cal Berkeley one is a bit odd.
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Especially as Berkeley is either a love it or hate it environment.
 
FfldCntyFan said:
Not quite 35 years ago (spring 1991) I read about California imposing state income tax on visiting baseball players (I'm an accountant, I have to read crap like that). The atate of California, going after major league baseball was what led to all professional athletes having to have taxes imposed by multiple states. California unwittingly hurt themselves on this however as while the were able to collect income tax from players on teams from other states as a percentage of games those teams played in California, they lost the ability to collect taxes on the games their teams played outside of California (50% of every team's ganes are on the road. Only five teams are located in California).

What they initial thought would be a revenue windfall ended up being basically revenue neutral, while creating quite a bit more work to track and file everything.


Especially as Berkeley is either a love it or hate it environment.
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I am an accountant. Income earned in a state is taxable in that state. Some states have a $ requirement but all pro athletes would surely exceed that limit. And, yes, that means pro athletes need to file tax returns in every state in which they earn income.

I’m not sure how the IRS looks at NIL. I’m not a CPA and not a tax expert but it seems to me that the NIL revenue is earned in the same state as the school.
 
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HuskyNan said:
I’m not sure how the IRS looks at NIL. I’m not a CPA and not a tax expert but it seems to me that the NIL revenue is earned in the same state as the school.
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The issue is the burden of proof would be on those claiming NIL is earned only in the state the student athlete is attending school.

There will be quite a bit of gray area, but I imagine it would be very difficult to demonstrate that NIL money was earned solely from the location of the school.
 
This feels like something out of Idiocracy, but nope it’s just the state of “college” football in 2026.
 
HCCForever said:
Do college athletes have to pay a percentage of their NIL for away games? Is it more beneficial for them to play away games in states such as Texas or Florida without state income taxes? Or is NIL not affected by where games are played?
Expand ...
since they’re not paid to play football, but rather for endorsements, no.
 
my comments are general in nature. Athletes will need to consider their domicile and figure out how much revenue was earned in each state where they performed services. I would assume that UConns NIL would issue W-2s. Generally payroll providers would withhold in each state where money was earned. I’m not exactly certain who is handling payroll for UConn athletes. On the other hand, if the athletes were issued 1099s, then the athletes are responsible for remitting payments to each state. This could get hairy pretty fast.
 
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FfldCntyFan said:
If they don't now they will soon. I don't see any way NIL can be defended as not being earned as a participant in the games they play (even if they may miss some games). At some point every tax state will want their share.
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It’s 100% earned income for federal and state purposes. And it seems they have to pay by state. To me it would make more sense for players to pay in the state their team is based in, at least for pros since they are employees. Contractors can deduct expenses too which could include travel and vehicle costs. Write off that Bugatti and business suits for their appearances.
 
Spsone07 said:
I’m a tax cpa in California and my comments are general in nature. Athletes will need to consider their domicile and figure out how much revenue was earned in each state where they performed services. I would assume that UConns NIL would issue W-2s. Generally payroll providers would withhold in each state where money was earned. I’m not exactly certain who is handling payroll for UConn athletes. On the other hand, if the athletes were issued 1099s, then the athletes are responsible for remitting payments to each state. This could get hairy pretty fast.
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I think they get 1099s rather than W2s until they become employees.
 
Kolumbo said:
I think they get 1099s rather than W2s until they become employees.
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I hope that the GM from each school are working closely with professionals so that they get appropriate guidance. Dealing with IRS audits on sch c is annoying
 
Spsone07 said:
I hope that the GM from each school are working closely with professionals so that they get appropriate guidance. Dealing with IRS audits on sch c is annoying
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I’d imagine there are some tax pros specializing in this field and consulting with the schools. Surely lots of Benjamin’s to be made.
 
Spsone07 said:
I hope that the GM from each school are working closely with professionals so that they get appropriate guidance. Dealing with IRS audits on sch c is annoying
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The IRS will be the easy part. The concern will be if (or when) states begin looking into who they want to go after for taxes, which won't begin for a few years, but will be pursued retrospectively.
 
giddyup said:
I wish we were no income tax like it used to be. Economy and industry was solid with lots of capital inflow and half the Fortune 500 headquartered here. We fumbled big time.
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I'm not sure how many of the thousands at Bushnell Park are still in Connecticut. I said it would be terrible to a WTIC reporter.

Oh well, I'm not sure what brought this up. Is NIL subject to taxes? I'm confused...
 
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