NIL Tax Checklist

Jesstine Kemper |

Part 1: Income Documentation

1099-NEC forms

Any brand, collective, or individual who paid you $600 or more in NIL income should send you a 1099-NEC. Collect every one. If you don't receive one, you still owe taxes on the income — so track it yourself.

Bank statements

Pull statements for every account that received NIL payments. Reconcile every deposit against a contract or agreement. Automated systems like Quickbooks can make this process straightforward and simple. 

Payment app records

If any NIL payments came through Venmo, PayPal, Zelle, or similar apps, download your transaction history for the year. Apps that processed over $600 in payments to you are required to issue 1099-K forms.

Revenue-sharing payments from your school

If you received direct revenue-sharing payments from your university under the House settlement, document those separately. The tax treatment may differ from third-party NIL income.

Part 2: Business Deductions

As a self-employed athlete, you can deduct legitimate business expenses from your NIL income. Common deductions include:

Equipment and technology

  • Camera, lighting, microphone, ring light for content creation
  • Computer, tablet, or phone used for NIL business

  • Software subscriptions (editing software, scheduling tools, etc.)

    Content creation costs

  • Videography or photography services

  • Graphic design and creative services

  • Studio time or location fees

Professional services

  • Agent or manager fees
  • Legal fees for contract review
  • Accounting and tax preparation fees

Education and development

  • NIL-related courses, workshops, or coaching
  • Books or subscriptions related to business or investing

Home office

If you have a dedicated, separate, workspace used exclusively for NIL business, you may be able to deduct a portion of your housing costs. Document the space and usage carefully.

Travel

NIL-related travel — to shoots, appearances, brand events — may be deductible. Keep receipts and document the business purpose.

Part 3: Retirement Account Contributions

Solo 401(k) contributions

Document every contribution you made to your Solo 401(k) during the year. Both employee and employer contributions are potentially deductible (for Traditional) or tracked for basis (for Roth). Your plan administrator should provide a year-end statement.

IRA or SEP IRA contributions

If you contributed to any other retirement account, document those amounts.

Part 4: Quarterly Tax Payments

Estimated tax payment records

If you made quarterly estimated tax payments (January, April, June, September), collect proof of each payment. These offset your total tax bill and should not be paid again at filing.

Underpayment review

If you missed or underpaid any quarterly payment, calculate the potential penalty before filing. Your tax preparer can help determine whether you owe an underpayment penalty and how to minimize it.

Part 5: Business Structure Documents

LLC formation documents

Keep your Articles of Organization and Operating Agreement accessible. Your tax preparer may need to reference your business structure.

EIN (Employer Identification Number)

Your LLC's tax ID number is needed for filing Schedule C or a business return. If you don't have one yet, apply at IRS.gov — it's free.

S-Corporation election (if applicable)

If you elected S-Corp status, you'll file a separate S-Corp return (Form 1120-S). Document when the election went into effect and any distributions you took as a shareholder.

Part 6: State Tax Considerations

Your home state

Most NIL income is taxable in your state of residence. Know your state's tax rate and any NIL-specific rules.

Other states

If you performed NIL activities (appearances, shoots, events) in states other than your home state, you may have filing obligations in those states. Document where each piece of work was performed.

Common Mistakes to Avoid

Not reporting income without a 1099: All NIL income is taxable, even if you don't receive a form. The absence of a 1099 doesn't mean the income is invisible.

Missing the self-employment tax: 15.3% of net NIL income goes to SE tax before income tax is calculated. This is the most common source of tax bill shock.

Not deducting business expenses: Many athletes leave thousands in deductions on the table by not documenting their business costs throughout the year.

Filing as a personal filer with no Schedule C: NIL income requires a Schedule C (profit/loss from business). Make sure your preparer is filing the right forms.

The Best Move: Don't File Alone

NIL tax returns are more complex than a standard college student's taxes. Working with a CPA or tax professional who understands self-employment income, Schedule C, and NIL-specific issues is the most reliable way to file correctly and minimize what you owe.

IroncladNIL provides CPA and tax filing services for NIL athletes — book a free call → www.ironcladnil.com 

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Investment advisory services offered through Mutual Advisors LLC DBA IroncladNIL, an SEC registered investment adviser. Securities offered through Mutual Securities, Inc., Member FINRA/SIPC. Mutual Securities, Inc. and Mutual Advisors, LLC are affiliated companies. IroncladNIL, nor any of its members, are tax accountants or legal attorneys, and do not provide tax or legal advice. For advice tailored to your situation, please consult your tax or legal professional.