It's all subject to Federal taxes. State depends on structure

In Reply to: Question regarding NIL and taxes. posted by hotspot on December 29, 2024 at 09:54:33

In the case of professional athletes their pay (the non-sponsorship part) is for the work they do on the field and is subject to state taxes in the states where they play. With NIL, nominally the earnings are for use of name, image, and likeness. Maybe you could do "the work" to earn those in a state with low or no income taxes?

Tax rates are the same in each jurisdiction.

Follow Ups:

• The question is, does the jock tax apply to nil UCLABB 15:36:18 12/29/24 (1)
  • Poorly worded on my part donutello 18:08:40 12/29/24 (0)
• In theory, I get what you’re saying. hotspot 15:00:36 12/29/24 (0)
• And when schools start paying athletes directly, that will be taxed * TheHappyBurgermeister 11:59:46 12/29/24 (0)

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