question on nil

[uk100]

when players receive NIL money is it considered a gift earned wages scholarship money or what

 

[Wildcats1st]

Earned wages 1099 a contractor of sorts

 

[StubbornPenny]

Earned wages, just like if a company or organization paid me to be their spokesman or appear in their ads. It is to be reported on taxes.

By the way companies, I’m available.

 

[JHB4UK]

1099 taxable misc income

 

[anon1751545683]

when players receive NIL money is it considered a gift earned wages scholarship money or what

My former company used two UK players for advertising under the NIL guidelines.

We had to 1099 them.

 

[CatPatrick13]

And….all self-employed individuals can write off business expenses

 

[StubbornPenny]

And….all self-employed individuals can write off business expenses

Write off your Nikes. Gotta be the shoes lol.

I used to write off guitar related items when I taught. Consumables, baby!

 

[FilsonCat]

when players receive NIL money is it considered a gift earned wages scholarship money or what

NIL is compensation between players and third parties for use of the players' names, images, or likenesses in commercial activities. This isn't a gift, isn't wages from employment, and isn't scholarship money. It is ordinary income and players will have to pay Federal, State, and Local income taxes on it. Hopefully they're setting up tax advantaged business entities to deduct expenses and pass through a good chunk of the income as royalties and distributions.