Most student-athletes are treated as independent contractors, not employees. That means:

• No taxes are automatically taken out of your checks.

• You’re responsible for reporting and paying taxes yourself.

• You may need to make quarterly tax payments if you earn above a certain amount.

✔ Keep copies of every contract, invoice, and payment.
✔ Save digital records (bank deposits, PayPal/Venmo receipts, etc.).
✔ Expect to receive a Form 1099-NEC from companies that pay you $600 or more in a year.

You can often deduct expenses related to NIL activities. Common examples include:

• Travel costs for appearances or signings.

• Equipment, uniforms, or training gear purchased for promotional events.

• Marketing or website costs (if you promote your brand online).

• Professional services (legal, tax preparation, brand consulting).

Keep receipts and store them in a folder or digital app so you’re ready at tax time.

A good rule of thumb is to set aside 25–30% of your NIL earnings for taxes. That way, you won’t be caught off guard by a big bill in April.

✔ Report NIL income on your federal and state tax returns.
✔ Include both 1099-NECs and any smaller payments you received without a form.
✔ File on time to avoid penalties.

If you’re earning significant income, consider working with a tax professional who understands athlete finances.

✔ Keep a simple spreadsheet of earnings and expenses.
✔ Use apps or software to track transactions automatically.
✔ Review your income every few months to see if you need to make estimated tax payments.