forums

Taxes and NIL

fraggle

fraggle

Senile Senior
Joined
Nov 7, 2011
Messages
3,083
There is an Entertainer and Jock tax for performances (entertainers) and road games (Jocks) and NIL is income and college football players (or any athlete who get NIL money) is taxed on a day rate. California thats more then 13 percent (taxable amount) with New York close behind with high state income tax. It keep Tyrek Hill from going to the Jets as he'd of lost 3 million plus just in tatxes. When we play Cal or Stanford at home our NIL players get taxed. We seem to be getting our fair share of California players and I wonder if tax is why. I wonder what it cost Carson when we played California. I'm sure there are those eho know much more about this then I, please add your ccomments as to how punishing NIL taxation might be. NYC for example has city tax too!
 
Tom Cruise What GIF
 
fraggle said:
There is an Entertainer and Jock tax for performances (entertainers) and road games (Jocks) and NIL is income and college football players (or any athlete who get NIL money) is taxed on a day rate. California thats more then 13 percent (taxable amount) with New York close behind with high state income tax. It keep Tyrek Hill from going to the Jets as he'd of lost 3 million plus just in tatxes. When we play Cal or Stanford at home our NIL players get taxed. We seem to be getting our fair share of California players and I wonder if tax is why. I wonder what it cost Carson when we played California. I'm sure there are those eho know much more about this then I, please add your ccomments as to how punishing NIL taxation might be. NYC for example has city tax too!
Click to expand...



Yes, all of the top football players from Columbia and NYU have flipped to UM.
 
d
fraggle said:
There is an Entertainer and Jock tax for performances (entertainers) and road games (Jocks) and NIL is income and college football players (or any athlete who get NIL money) is taxed on a day rate. California thats more then 13 percent (taxable amount) with New York close behind with high state income tax. It keep Tyrek Hill from going to the Jets as he'd of lost 3 million plus just in tatxes. When we play Cal or Stanford at home our NIL players get taxed. We seem to be getting our fair share of California players and I wonder if tax is why. I wonder what it cost Carson when we played California. I'm sure there are those eho know much more about this then I, please add your ccomments as to how punishing NIL taxation might be. NYC for example has city tax too!
Click to expand...
I wondered if NIL fell into jock tax as it is not supposed to be "pay for play" so technically you shouldnt be taxed for game in Cali, not sure tho.. I think players are responsible for their own and not usually aware of that.. They get that rude awakening quick tho
 
skyman said:
d

I wondered if NIL fell into jock tax as it is not supposed to be "pay for play" so technically you shouldnt be taxed for game in Cali, not sure tho.. I think players are responsible for their own and not usually aware of that.. They get that rude awakening quick tho
Click to expand...


Why?

Just...why?
 
Fraggle is actually correct here:

“Yes, California’s tax laws heavily impact college athletes, particularly through state income tax and multi-state "jock tax" rules. Because the IRS treats all Name, Image, and Likeness (NIL) money as taxable income, athletes face complicated filing obligations across state lines. [1, 2, 3, 4, 5]

How California Taxes NIL Income
  • State Residency: If you attend college in California and are considered a resident, the state will tax the entirety of your NIL earnings, even if a brand deal comes from out-of-state. California has some of the highest marginal state income tax rates, reaching up to 13.3%. [1, 2, 3]
  • Non-Resident Taxation: If you attend school in another state but travel to California for games, appearances, or training, California can tax a portion of your NIL income earned while physically in the state. [1]”
 
RF-4CCane said:
Fragile is actually correct here:

“Yes, California’s tax laws heavily impact college athletes, particularly through state income tax and multi-state "jock tax" rules. Because the IRS treats all Name, Image, and Likeness (NIL) money as taxable income, athletes face complicated filing obligations across state lines. [1, 2, 3, 4, 5]

How California Taxes NIL Income
  • State Residency: If you attend college in California and are considered a resident, the state will tax the entirety of your NIL earnings, even if a brand deal comes from out-of-state. California has some of the highest marginal state income tax rates, reaching up to 13.3%. [1, 2, 3]
  • Non-Resident Taxation: If you attend school in another state but travel to California for games, appearances, or training, California can tax a portion of your NIL income earned while physically in the state. [1]”
Click to expand...

I suspect high tax states are not making much of an effort to go after college athletes......YET
 
Wait until these states start taxing business professionals for the time they spend in their states developing business and securing orders!
 
arizonacane said:
Wait until these states start taxing business professionals for the time they spend in their states developing business and securing orders!
Click to expand...


Uhhhh...many already do.

1782418026571.png


Now, this rule is used more heavily to determine CORPORATE tax nexus (though the principle is the same), but some grabby states will try to hit individuals on their individual returns too. See below for additional rules for individual employees.

1782418225086.png


Results may vary.
 
SpikeUM said:
I suspect high tax states are not making much of an effort to go after college athletes......YET
Click to expand...


If you recall, this is why a certain individual that Miami signed to an NIL deal...traveled to FL from CA to film his LifeWallet endorsements...

Unfortunately, a number of posters are cutting-and-pasting a bunch of random stuff, without understanding the implications.

1. The "jock tax" is about athletes from one state earning game-performance payments in another state. Thus, when the DOLPHINS (FL) play the BILLS (NY, since the Jets/Giants are in NJ), the state of New York is able to tax a fraction of the annual salary earned for playing that game in NY. Also, this is another good reason to get your BIG signing bonus in FL while having your "game salary" be set at a much smaller amount. Which is also good if you get fined by the NFL. But I double-digress.

2. The NIL revenue and taxation is also about performance. If a player had a Dr. Pepper endorsement and filmed everything in FL, no state sales tax. But if he had to do appearances in FL and NY and CA, then he would be taxed on the amounts paid to him for NY and CA appearances.

3. The presumption of where the NIL work is performed would be the state where the university is located (FL vs. say California), but obviously when you have things that involve filming commercials or in-person appearances, it becomes harder to argue that everything happened in FL. Not sure if things like "Heisman ceremony" would count, but it could. Oscar presenters SHOULD be picking up CA income on those swanky swag bags.

That is all for today's lesson...
 
RF-4CCane said:
Fraggle is actually correct here:

“Yes, California’s tax laws heavily impact college athletes, particularly through state income tax and multi-state "jock tax" rules. Because the IRS treats all Name, Image, and Likeness (NIL) money as taxable income, athletes face complicated filing obligations across state lines. [1, 2, 3, 4, 5]

How California Taxes NIL Income
  • State Residency: If you attend college in California and are considered a resident, the state will tax the entirety of your NIL earnings, even if a brand deal comes from out-of-state. California has some of the highest marginal state income tax rates, reaching up to 13.3%. [1, 2, 3]
  • Non-Resident Taxation: If you attend school in another state but travel to California for games, appearances, or training, California can tax a portion of your NIL income earned while physically in the state. [1]”
Click to expand...
Im sure California does this but these guys aren’t getting paid for the day spent in California. They have nil deals let’s say back in Florida. I would think they could argue that there’s no California domicile and no California earnings so no nexus between them and their NIL deal and Gavin Newsom. @TheOriginalCane
 
RVACane said:
Im sure California does this but these guys aren’t getting paid for the day spent in California. They have nil deals let’s say back in Florida. I would think they could argue that there’s no California domicile and no California earnings so no nexus between them and their NIL deal and Gavin Newsom. @TheOriginalCane
Click to expand...


It all depends on what the state can discover and prove.

Oh, and whether the company issues a 1099 for the state of CA.

No proof, no paper trail...no income...
 
Back
Top