Taxes/IRS

[RespecttheStars]

Serious question for our many Kelly educated/older/non-reactionary/actual employers here :

This is Jan/Feb and I know what I am now and for 30+ years am enduring with corporate taxes, independent contractors/1099’s,
W2’s etc.
Tis the season.

Anyone have a best guess about how this collegiate payroll thing shakes out on a fiscal honesty/risk management footing after a never seen before year of flux like 2024?

Are these highly compensated kids getting W2’s from IU (since the Uni’s allegedly moved some payment “in house”l this year) along with a multitude of 1099’s from their NIL relationships (negotiated and monetized and independent of the school)?

Does anyone in accounting out there want any part of this?
What are the designations?
How do you get them square and yourself square come April?

Are they students? Are they employees?
Are they independent contractors for the shadow LLC’s?

Lot of money out there not only in B-Town but everywhere in the collegiate sports world.
Not concerned with state law. That is
variable.

I’m talking basic federal taxation.

I’m interested if anyone has a first hand or at minimum a dispassionate take on what these kids are in for by 4/15 this year having lived through and profited significantly
from ‘24.

Maybe they earn some of it tonight.
Go Hoosiers.

Cogent ideas?

 

[Davehack]

NIL is designated as 100% tip income.
(Sorry, unserious reply)

 

[Stuffshot]

NIL is designated as 100% tip income.
(Sorry, unserious reply)

So then, doesn't that mean they receive a 1099 for their income (but no withholding) ?

 

[Tammany Hall]

Next year, assuming the House settlement is finalized, the athletic depts will start directly paying the players. TBD on the players’ classification.

Right now it’s all NIL, none of which comes from schools.

I assume schools and/or their NIL agent/lawyers set them up with accountants to help them pay their taxes.

 

[IU FAN IN W. NC]

Serious question for our many Kelly educated/older/non-reactionary/actual employers here :

This is Jan/Feb and I know what I am now and for 30+ years am enduring with corporate taxes, independent contractors/1099’s,
W2’s etc.
Tis the season.

Anyone have a best guess about how this collegiate payroll thing shakes out on a fiscal honesty/risk management footing after a never seen before year of flux like 2024?

Are these highly compensated kids getting W2’s from IU (since the Uni’s allegedly moved some payment “in house”l this year) along with a multitude of 1099’s from their NIL relationships (negotiated and monetized and independent of the school)?

Does anyone in accounting out there want any part of this?
What are the designations?
How do you get them square and yourself square come April?

Are they students? Are they employees?
Are they independent contractors for the shadow LLC’s?

Lot of money out there not only in B-Town but everywhere in the collegiate sports world.
Not concerned with state law. That is
variable.

I’m talking basic federal taxation.

I’m interested if anyone has a first hand or at minimum a dispassionate take on what these kids are in for by 4/15 this year having lived through and profited significantly
from ‘24.

Maybe they earn some of it tonight.
Go Hoosiers.

Cogent ideas?

As a person in the financial world for over 40 years I say "good question"

 

[Courtsensetwo]

As a person in the financial world for over 40 years I say "good question"

I understand it is self employment income reported on Schedule C. When the next shoe drops and revenue sharing is in play that may change. Is that what you understand?

There will be some kids that have issues when they already spent the money.

I hope they eventually become employees and subject to reviews and termination.

 

[Stuffshot]

I understand it is self employment income reported on Schedule C. When the next shoe drops and revenue sharing is in play that may change. Is that what you understand?

There will be some kids that have issues when they already spent the money.

I hope they eventually become employees and subject to reviews and termination.

So if "revenue sharing is in play" as you wrote, does that "sharing" create a partnership obligation?

 

[Courtsensetwo]

So if "revenue sharing is in play" as you wrote, does that "sharing" create a partnership obligation?

THAT is a hell of a good question.

 

[kurt cloverdales]

foreign born players will be deported, unless they attacked the police, they will be called patriots

 

[hookyIU1990]

foreign born players will be deported, unless they attacked the police, they will be called patriots

Running a little hot. You're an hour or so ahead of schedule. Start earlier?

 

[ams66]

I understand it is self employment income reported on Schedule C. When the next shoe drops and revenue sharing is in play that may change. Is that what you understand?

There will be some kids that have issues when they already spent the money.

I hope they eventually become employees and subject to reviews and termination.

I sure hope the NIL collectives or whoever is paying the players are warning them about the taxes that will be due if they are not withholding.