NIL, taxes & Professions

[Caveira]

11 minutes ago, cangemi said:

Not year recieved . Following year

There is a threshold somewhere where you have to pay quarterly or get a penalty.  My accountant says I have to pay.  So I pay.  It’s a pain in the azz doing it 4 times a year    So I think ionel is right here 

Edited 8 hours ago by Caveira

[ionel]

15 minutes ago, cangemi said:

Not year recieved . Following year

That's news to me, generally if no withholding you need to estimate income and pay at least quarterly tax or if excessive income incurr penalty & interest. 

[Caveira]

13 minutes ago, ionel said:

That's news to me, generally if no withholding you need to estimate income and pay at least quarterly tax or if excessive income incurr penalty & interest. 

100% every time I sell my equity I get dinged with the quarterly tax bill.  

[cangemi]

NoUsually quarterly are based on previous year income returns.. not the year of the income.

 

 

[Animal197]

I think a lot of the bigger programs have in house advisors for athletes with significant NIL deals. They don’t want athletes getting in trouble with taxes and etc.

 

one thing I’m wondering is for big-time prospects how long until the state’s tax laws start becoming a recruiting advantage. I believe TN, TX, and FL don’t have state income taxes. I saw when the QB from TN transferred to UCLA, that even though the deals were similar in total amounts (2 vs 1.75 million/year) because of CA income taxes his take home is much, much less in CA than what it was.

 

Probably only a football and basketball issue though.

[ionel]

1 hour ago, cangemi said:

NoUsually quarterly are based on previous year income returns.. not the year of the income.

That doesn't make sense.  If there was an income return in previous year then there was income. 

Most of these athletes receive NIL for multiple years thus NIL in the previous year and thus need to file quarterly or some other tax collection method for the expected income else pay penalty and interest. 

[cangemi]

53 minutes ago, ionel said:

That doesn't make sense.  If there was an income return in previous year then there was income. 

Most of these athletes receive NIL for multiple years thus NIL in the previous year and thus need to file quarterly or some other tax collection method for the expected income else pay penalty and interest. 

I googled it. You may be right. I pay quarterly as estimate.  I think it is quarterly based on what recieved. That said original post correct. Get a professional  tax advisor.