Taxable implications for colleges and athletes

[molar50]

Anyone know if paid college athletes are responsible for filing tax returns showing their revenue? What about their room and board? If so, do they pay state income tax and do they need to file for each state in which a game has been played similar to pro athletes? I think the athletic housing, practice facilities, and stadiums could lose their current tax free status

[egib52]

Anyone know if paid college athletes are responsible for filing tax returns showing their revenue? What about their room and board? If so, do they pay state income tax and do they need to file for each state in which a game has been played similar to pro athletes? I think the athletic housing, practice facilities, and stadiums could lose their current tax free status

I have long thought with nil and athletes unionizing we were going to see the government come for their piece.

[Bradley8792]

Anyone know if paid college athletes are responsible for filing tax returns showing their revenue? What about their room and board? If so, do they pay state income tax and do they need to file for each state in which a game has been played similar to pro athletes? I think the athletic housing, practice facilities, and stadiums could lose their current tax free status

I would sure hope so. Their employees now. Should be held to the same requirement as the rest of us.

[JMM28]

Anyone know if paid college athletes are responsible for filing tax returns showing their revenue? What about their room and board? If so, do they pay state income tax and do they need to file for each state in which a game has been played similar to pro athletes? I think the athletic housing, practice facilities, and stadiums could lose their current tax free status

They all have to file tax returns.

NIL money is 1099 for the most part. They pay state and federal tax on that like any independent contractor.

No tax on any of the scholarship, room/board, etc. That changes if they become employees though. That all becomes taxable income.

State Rep Travis Weaver (A good Bradley fan) has introduced a bill to eliminate state tax on NIL earnings up to $100,000. It is a 4D chess move to help improve athletics at state universities. Successful basketball/football has been widely shown to increase applications, admissions, donations, etc.

[yoda]

agree JMM, the whole idea of NIL was so the players can EARN money, which requires playing taxes and keeping records in case of audits
Even the IRS has an informative website telling them of their tax obligations - https://www.taxpayeradvocate.irs.gov...tions/2023/12/

but state laws do vary, so there are a couple states , Alabama & Georgia, that don't tax NIL...

[Tommy]

I think we can all agree that we’re thankful for the IRS.