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Post by stdyedy on Dec 14, 2023 7:30:53 GMT -8
Can a non scholarship athlete have an NIL Agreement? It seems this could be a way to circumvent the scholarship limit.
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Post by Judge Smails on Dec 14, 2023 8:05:51 GMT -8
Can a non scholarship athlete have an NIL Agreement? It seems this could be a way to circumvent the scholarship limit. Yes, they can. BYU's collective is paying all of their athletes including walk-ons. |
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Post by speakthetruth on Dec 14, 2023 8:14:24 GMT -8
Something these free agents might not be thinking about scholarships that pay for tuition and books aren't taxable. The NIL money is completely taxable.
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Post by hometownbeaver on Dec 14, 2023 10:08:57 GMT -8
Something these free agents might not be thinking about scholarships that pay for tuition and books aren't taxable. The NIL money is completely taxable. I am 100 percent certain that's the least of anyone getting paid concerns. No sorry you want to pay me 100k to play but not give me the $25k in scholarships..... the whole point the poster is making, is that NIL allows teams to buy the entire roster. Not limited to the 85 scholarships available. The answer is yep of course it does and many of us knew that the second NIL began being discussed. |
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Post by wilkyisdashiznit on Dec 16, 2023 21:12:46 GMT -8
Something these free agents might not be thinking about scholarships that pay for tuition and books aren't taxable. The NIL money is completely taxable. It is taxable, but, if you use the money to pay for tuition and books, it would not be taxable again. It would have to be saved or spent on something that could not be deducted for it to ultimately taxable. |
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Post by jefframp on Dec 17, 2023 9:44:49 GMT -8
The taxable situation only become important if you itemize your deductions. Many of us take the standard deduction on our 1040.
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Post by bvrbooster on Dec 17, 2023 12:18:51 GMT -8
Something these free agents might not be thinking about scholarships that pay for tuition and books aren't taxable. The NIL money is completely taxable. It is taxable, but, if you use the money to pay for tuition and books, it would not be taxable again. It would have to be saved or spent on something that could not be deducted for it to ultimately taxable. The 'tuition and fees' deduction expired at the end of 2020, and was not renewed by congress. There are education credits still available, but NIL money is taxable income, same as your paycheck. Spending NIL money on tuition is exactly the same as spending it on rent or beer - no impact on taxes. speakthetruth does just that when suggesting athletes, given the choice, should always opt for non-taxable money versus taxable. Since the athlete presumably provides a work service for the NIL payment, it is treated as self employment income, subject to all state and federal income tax plus self employment tax - basically, 15.3% off the top which doesn't reduce the amount subject to income tax. If a scholarship is worth $50,000 (just making up a number), then the individual receives that with no tax consequence. If he isn't provided a scholarship, but instead gets $50,000 in NIL, he could be looking at $10,000 or more in total taxes. That leaves him with a net $40,000 in hand to pay a tuition bill of $50,000. You're never too young to learn the tax angle on things. |
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Post by rgeorge on Dec 17, 2023 12:22:55 GMT -8
It is taxable, but, if you use the money to pay for tuition and books, it would not be taxable again. It would have to be saved or spent on something that could not be deducted for it to ultimately taxable. The 'tuition and fees' deduction expired at the end of 2020, and was not renewed by congress. There are education credits still available, but NIL money is taxable income, same as your paycheck. Spending NIL money on tuition is exactly the same as spending it on rent or beer - no impact on taxes. speakthetruth does just that when suggesting athletes, given the choice, should always opt for non-taxable money versus taxable. Since the athlete presumably provides a work service for the NIL payment, it is treated as self employment income, subject to all state and federal income tax plus self employment tax - basically, 15.3% off the top which doesn't reduce the amount subject to income tax. If a scholarship is worth $50,000 (just making up a number), then the individual receives that with no tax consequence. If he isn't provided a scholarship, but instead gets $50,000 in NIL, he could be looking at $10,000 or more in total taxes. That leaves him with a net $40,000 in hand to pay a tuition bill of $50,000. You're never too young to learn the tax angle on things. And, with all the false rumors of big NIL $ and the supposed nonprofit status (record keeping if all revenue and expenses) of NIL organizations you wonder how many athletes know their NIL $ are taxable or don't claim it? |
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Post by wilkyisdashiznit on Dec 17, 2023 13:56:56 GMT -8
It is taxable, but, if you use the money to pay for tuition and books, it would not be taxable again. It would have to be saved or spent on something that could not be deducted for it to ultimately taxable. The 'tuition and fees' deduction expired at the end of 2020, and was not renewed by congress. There are education credits still available, but NIL money is taxable income, same as your paycheck. Spending NIL money on tuition is exactly the same as spending it on rent or beer - no impact on taxes. speakthetruth does just that when suggesting athletes, given the choice, should always opt for non-taxable money versus taxable. Since the athlete presumably provides a work service for the NIL payment, it is treated as self employment income, subject to all state and federal income tax plus self employment tax - basically, 15.3% off the top which doesn't reduce the amount subject to income tax. If a scholarship is worth $50,000 (just making up a number), then the individual receives that with no tax consequence. If he isn't provided a scholarship, but instead gets $50,000 in NIL, he could be looking at $10,000 or more in total taxes. That leaves him with a net $40,000 in hand to pay a tuition bill of $50,000. You're never too young to learn the tax angle on things. You are 100% right, though. The tuition and fees deduction expired in 2021. I wonder, if they allowed the tuition and fees deduction to expire to try and make more of that NIL money taxable. Full Democratic control of Congress and the White House, too. Weird. At least the first $13,850 of NIL money is tax free, though, and you would be able to utilize the Hope Credit for the next $2,000 and $500 of the next $2,000. Beyond that, though, yeah, anything that you get beyond that appears to me to be taxable. |
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