Do I need to pay taxes on my Name Image and Likeness (NIL) earnings as a college athlete?

Thanks for explaining! That makes sense but sounds expensive. Do you think I should ask my employer to withhold extra from my paychecks for the rest of the year to cover what I'll owe on the NIL and scholarship? And how would I even calculate the right amount?

Yes, increasing your withholding is a good strategy! You can give your employer a new W-4 form and request additional withholding. For a rough calculation, you're looking at about 12% federal income tax on both the NIL and scholarship (around $1,164) plus self-employment tax of 15.3% on just the NIL amount (about $995). So you'd need approximately $2,159 in additional tax beyond what's already being withheld from your job. If you have about 3 months of paychecks left this year, you could request about $180 in additional withholding per week. Alternatively, you could make an estimated tax payment directly to the IRS using Form 1040-ES, which might be simpler than adjusting your withholding.

Does taxr.ai help specifically with college athlete NIL situations? I've got a similar issue but with multiple small NIL deals rather than one big one. Do I need to file a separate Schedule C for each deal or can I combine them?

I'm skeptical about tax AI tools... How does it handle the fact that some schools classify NIL differently? Mine gave me a 1099-MISC rather than a 1099-NEC and my advisor said that changes how it's taxed.

Yes, it absolutely handles college athlete NIL situations specifically! You can combine all your NIL deals on a single Schedule C as long as they're all part of the same type of activity (using your name/image as an athlete). The system walks you through categorizing them all properly. For the different 1099 forms, taxr.ai actually explains the distinction clearly. Whether you receive a 1099-MISC or 1099-NEC mainly affects where you report the income on your tax forms, but both are generally subject to self-employment tax. The system automatically detects which form you received and guides you through the proper reporting process. It saved me hours of confusion trying to figure this out on my own.

How exactly does Claimyr work? Do they just call the IRS for you or what? I've been trying to get through for weeks about my NIL taxes too but keep getting disconnected.

Sounds like a scam. The IRS doesn't prioritize calls from third parties. I doubt this actually works - probably just charges you for something you could do yourself if you just keep trying.

Claimyr doesn't call the IRS for you - they use technology to navigate the IRS phone system and secure your place in line. When they reach a live agent, they call you and connect you directly to that agent. It worked within 15 minutes for me after I had spent hours getting disconnected. The service definitely isn't a scam. The IRS doesn't know or care that you're using Claimyr - from their perspective, you're just another caller who got through the phone system. The difference is Claimyr's system knows exactly when to call and which options to select to minimize wait time. When I finally spoke to the agent, they explained my options for the underpayment penalty relief clearly and helped me understand what forms I'd need to submit with my return.

Wait really? I got about $2000 worth of athletic equipment through my NIL deal and it wasn't on any tax form they gave me. How do you even calculate the value to report if they don't tell you what it's worth?

You'll need to determine the fair market value of the equipment you received. Check online for the retail prices of the same or similar items - that's what the IRS expects you to report. If the company or school didn't include it on your 1099, you should still report it on your tax return as "other income" to avoid potential issues later. For athletic equipment that has a clear retail value, use those prices. If it's custom gear, try to find comparable items. Take screenshots of your research in case you need to justify the values you reported. I created a spreadsheet tracking all my NIL "payment in kind" items with links to retail listings as documentation.

This is terrible advice. My school's "tax workshop" was just a generic presentation that basically said "NIL is taxable, consult a tax professional." They wouldn't answer specific questions because they were afraid of giving "tax advice." Complete waste of time.

I actually did try talking to our compliance office first, but they just gave me a generic handout about "tax implications" without any specific guidance. They said they aren't allowed to give tax advice and told me to talk to an accountant. Didn't even mention quarterly estimated payments at all, which seems like a pretty important detail!

Oh that's super helpful. My school's athletic department handles NIL deals through their foundation, and I've been wondering how that would show up on tax forms. Did you have to request the 1099 or did they eventually send the correct form automatically?

I had to specifically request the 1099 after I noticed the error. They initially included the NIL payment on my 1098-T, which is only supposed to show tuition and qualified scholarships. When I questioned it, they admitted it was an error because their system wasn't set up properly for NIL payments yet. I'd recommend calling your school's foundation office directly in January if you don't receive a 1099-NEC or 1099-MISC by the end of the month. Don't just assume they'll handle it correctly, especially since NIL is still relatively new for most university accounting systems. It's better to address any issues before you file your taxes than have to amend returns later.