NIL income is self-employment income with no taxes withheld. That means college athletes could owe 25 to 40 percent of every NIL payment in federal, state, and self-employment taxes. This guide breaks down exactly how much NIL athletes pay in taxes with real examples and a simple savings rule to avoid surprises.
NIL money is taxable from the first dollar and most college athletes find out at tax time. Learn how to handle quarterly payments, deduct legitimate expenses, form an LLC or S-Corp, and build a tax strategy that protects every dollar you earn from brand deals, appearances, and sponsorships.
