NCAA / NIL Income

What does NIL stand for?
NIL stands for “Name, Image, and Likeness.” It allows college athletes to receive compensation for their personal brand, such as sponsorships, endorsements, and social media promotions.

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How is NIL income taxed?
NIL income is considered self-employment income and is subject to federal and state income taxes, plus self-employment tax. Without proactive tax planning, athletes could owe 30–40% or more of their earnings in taxes.

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What is NIL return in income tax?
This refers to how NIL earnings are reported on a tax return. If you’re earning income from NIL deals, it must be reported as business income—typically on a Schedule C.

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How to report NIL money on a tax return?
NIL income is usually reported on a Schedule C (Form 1040) as self-employment income. You must also file Schedule SE to calculate self-employment tax. If your NIL business is structured as an LLC or S corp, additional forms may apply.

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Is NIL a tax write-off?
No, NIL income is taxable—not a deduction. However, business expenses related to NIL activities (travel, marketing, training, etc.) may be deductible.

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How does NIL money work?
Brands pay athletes directly for the right to use their name, image, and likeness in promotional activities. Athletes are responsible for tracking this income and paying taxes on it.

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Who pays the NIL money?
NIL payments come from third parties such as brands, companies, collectives, or universities through authorized deals—not from the NCAA directly.

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Is NIL money taxable?
Yes. All NIL income is taxable and must be reported. Athletes should save for taxes and work with a professional to avoid surprise tax bills.

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What is a NIL tax return?
A NIL tax return is a regular income tax return (Form 1040) with specific schedules to report self-employment income from NIL deals.

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What if I only made a small amount from football this year?
You still need to file and plan—even $5K can cost you thousands in penalties later. Starting with the right structure early helps you build clean financial habits and protect future earnings.

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Is this legal?
100%. We’re a licensed CPA firm. Everything we do is by the book—and to your benefit. Our goal is to maximize your savings while keeping you in full IRS compliance.

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Is this just a call or do you file everything for me?
We offer done-for-you services after your call if it’s a good fit. You’ll walk away with a clear plan—and if you choose to move forward, we handle the filings, setup, and ongoing support.