NIL Deals and Taxes
The landscape of college football, basketball, and athletics in general has changed.
As a result of a recent Supreme Court decision against the NCAA (NCAA vs. Alston) and subsequent NCAA rule changes, athletes are now able to make money on their Name, Image, and Likeness (“NIL”). This was long overdue. I recall my time as an athlete at Florida State. There was much we could not do.
While NIL may be a welcome change for athletes and their representatives, they must now pay taxes on their income. Internal Revenue Code Sec 61 says “that all amounts from any source are included in gross income unless a specific exception exists.” College athletes will now have to pay federal, state, and in some cases local taxes. Indeed, a tax advisor should be consulted.
Nehemiah Jefferson, Esq., LL.M., is President of America’s Tax Attorney LLC. The tax resolution and advisory firm provides comprehensive Tax Preparation, Tax Representation, Tax Litigation, and Tax Consultation services to individual and small business clients nationwide. He earned his Bachelor’s degree from The Florida State University, his Juris Doctor from John Marshall Law School (Atlanta), and LL.M. in Taxation from the University of Alabama. Attorney Jefferson is licensed to practice law in the State of Florida, The District of Columbia, and is a member of the United States Tax Court Bar. He may be reached at 1-877-575-7765 or [email protected].