Name, Image & Likeness (NIL) has provided college athletes with the opportunity to secure partnerships with brands, fans, donors, and collectives. While these deals provide financial benefits, they also introduce responsibilities that some athletes may not have navigated before. Understanding taxes can be overwhelming, but staying informed can help athletes avoid major headaches down the road.
From tax forms to write-offs, here are some things college athlete influencers should consider when managing their taxes.
Most College Athletes are Independent Contractors
Unlike traditional jobs where taxes are automatically withheld, NIL earnings often require athletes to track income, set aside money for taxes, and navigate complex deductions.
Most athletes will be classified as independent contractors. Ultimately, they are small business owners who are responsible for reporting earnings and paying taxes accordingly.
How Opendorse Helps: New Partial Withdraw functionality allows users to easily move money from Opendorse to different checking and savings accounts of your choice. Opendorse does not force banking solutions or debit cards on athlete users.
Key Tax Forms Every Student-Athlete Should Know
Form W-9
The Form W-9 is used by a business or organization that will be paying you to collect your Taxpayer Identification Number (TIN)–typically, your Social Security Number (SSN). If you’re earning money through NIL partnerships, you’ll likely need to fill out a W-9 before receiving payment. This form allows them to report the payments they make to you to the IRS.
How Opendorse Helps: Filling out a W-9 is done quickly and securely through the Opendorse platform, via its payment processor, Stripe.
Form 1099-NEC
If you earn $600 or more in cash or non-cash compensation during a calendar year, the company that paid you must provide you with a Form 1099-NEC (Non-employee Compensation). Unlike a traditional job, NIL payments to independent contractors do not have taxes withheld, so the Form 1099-NEC will be important to your filing of your income taxes each year. It’s important to know that the IRS will also receive a copy of the 1099-NEC as well, so they’ll expect you to report this income when you file.
If you work with multiple brands outside of Opendorse, you may receive multiple 1099s. NIL income from different platforms won’t appear on the same 1099—each platform that compensates you $600 or more during the calendar year will report your earnings on its own 1099.
These forms must be sent by January 31, so contact your partners if you have not yet received your 1099 and you believe you should.
How Opendorse Helps: Athletes that earn more than $600 through the Opendorse platform will receive one consolidated 1099-NEC from Opendorse. You may have earned a total of $6,000 from 10 different brands during the year; Opendorse keeps track of it all for you and you will receive just one 1099-NEC from Opendorse—as long as all deals are sent through the platform. It’s a great benefit of the platform and our Services team. If you secure deals off-platform, while disclosing your non-Opendorse deals through the app ensures they are logged in one centralized place, those deals will not be included in the Form 1099-NEC that you receive. Take advantage by downloading your Disclosure Summary to ensure your work is accounted for and centralized for review with your tax advisors.
Common Tax Challenges for NIL Athletes
1. Confusion About What’s Taxable
Some athletes assume NIL money is “extra” income that doesn’t need to be reported. Nearly all payments—including cash and in-kind compensation—are taxable.
2. You’re on the Hook for In-Kind Comp
Many athletes receive merchandise, vehicles, services, food, and other non-cash benefits. Paying parties must disclose the value of these products and issue a 1099 form if the value exceeds $600. Did you receive a shipment of gear for an unboxing that’s valued at $1,000? What about a $75,000 car from a local dealership? The value of these types of compensation is classified as income and these benefits will likely be taxable. Have a plan to ensure you have the funds to cover the taxes levied against in-kind earnings at the end of the year.
3. Not Knowing What Can Be Deducted
Just like content creators and small business owners, athletes may be able to write off certain expenses related to their NIL activities. For example:
✅ Training costs (if directly related to an NIL obligation)
✅ Travel expenses (when traveling specifically for a deal)
✅ Equipment purchases (if necessary for content creation or performance obligations)
However, tax laws can be tricky—what’s deductible for one athlete might not be for another. Consulting a tax professional is the best way to ensure you take advantage of all available deductions while staying compliant.
4. Mixing Personal and NIL Income
Many athletes fail to separate their NIL earnings from personal finances, which can lead to issues during tax season. Keeping NIL-related income in a separate account can make it easier to track earnings and potential deductions.
How to Stay Ahead of Tax Obligations
1. Keep Track of Your Earnings
Whether you’re getting paid through Opendorse or another platform, make sure you have records of all of your NIL deals and payments. A simple spreadsheet or bookkeeping app can help you stay organized. Use Opendorse as your NIL business management platform.
2. Set Aside Money for Taxes
Since taxes aren’t automatically withheld from NIL payments, student-athletes should consider setting aside a portion of each payment—typically 20-30% of earnings, depending on income level—to ensure you have funds to pay taxes at the end of the year.
If you’re earning consistent income through NIL deals, you may need to make quarterly estimated tax payments to the IRS. This helps you avoid large tax bills or potential penalties at the end of the year.
3. Work with a Tax Professional
Tax rules for NIL athletes are still evolving, and every situation is unique. There are variations by state. Finding a CPA or tax service that understands athlete earnings can help you maximize deductions and avoid penalties.
Final Takeaway: NIL Success Includes Tax Preparedness
Earning money through NIL deals is exciting, but it also comes with financial responsibilities. Student-athletes who take their tax obligations seriously—by tracking income, saving for taxes, and seeking expert guidance—can avoid pitfalls and keep more of what they earn.
Being proactive now will save you time, money, and headaches in the long run.
DISCLAIMER: Opendorse is not a legal or financial advisor. This article is for general guidelines and should not be regarded as tax advice. For any questions regarding the reporting of taxes, or filing of such, please seek out advice from a registered advisor or other trusted representative.
