Is NIL income taxable?
Yes, NIL income is generally taxable, including products and services. Here is how it is usually reported, and why a missing 1099 does not change that.
A CPA firm for college athletes with NIL income
Know what to set aside before you spend your NIL income.
Year-round CPA guidance for college athletes earning NIL income or preparing for their first payment. Understand what each payment means for your taxes, keep your records organized, and plan ahead with parents and advisors involved when you want them.
The intro call is complimentary. It is a chance to talk through your situation and decide together what kind of support fits. It is not a tax review, and we do not provide personalized calculations or a tax strategy on the call.
Next federal estimated tax due date: What this means
- Sponsored posts for a sports drink brand Cash $1,500
Nothing withheld. Income tax and self-employment tax may apply.
- Shoes and apparel for a campaign Products $600 value
No cash changed hands, and it can still be taxable income.
- Autograph signing in another state Cash $800
Another state may expect a tax return.
- Gift card for a local restaurant promotion Gift card $150
A gift card received for promotion can be income too.
Received $3,050
Tax withheld $0
Fictional example, not a real client. How each item is taxed depends on the facts of the deal and the athlete's situation, so the same payment can be treated differently for different athletes.
Who Anchor & Flint works with
For athletes You earn the income and make the decisions. We explain what it means and help you stay ahead of it. For parents and guardians A professional who explains the issues plainly and keeps you informed, with the athlete at the center. For agents, collectives, and universities A clear way to introduce athletes to CPA support that stays within the tax and accounting scope.
Why it matters
NIL money is real income, and it comes with real responsibilities
Most athletes are not doing anything wrong. They are simply earning in a way that school, sports, and past summer jobs never prepared them for. Year-round guidance helps in three practical ways.
- Understand what each payment means for your taxes
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NIL income is generally taxable, including products and services you receive instead of cash. When an athlete is paid as an independent contractor, no tax is taken out, and the IRS may expect estimated tax payments: payments you send yourself during the year to cover income tax and self-employment tax on money that had no withholding. Not every payment is treated the same way, which is why each one is worth understanding.
Is NIL income taxable? - Get organized before records and deadlines pile up
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Contracts live in email, payments land in different apps, and free gear shows up without a receipt. A simple system started early makes estimated payments, filings, and any questions from payers much easier to handle.
What records to keep - Ask the tax question before your next financial decision
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Spending a payment before setting money aside, forming an LLC because a teammate did, or accepting an appearance in another state can each carry consequences. Talking it through first lets you weigh them while you still have options.
What to do after a first NIL payment
What you receive
Year-Round NIL CPA Support
One ongoing service rather than a menu of separate products. Here is the work an engagement is built around.
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Personalized tax reserve recommendation
How much to set aside from your NIL income, based on your numbers.
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Organized income and expense tracking
A simple way to record payments, expenses, and the paperwork behind them.
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Estimated-payment calculations when needed
Federal and state estimated payments figured from your actual activity.
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Scheduled reviews
Agreed check-ins to look at what changed and what is coming up.
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Annual tax filings
Your returns, prepared from records kept current all year.
Your written engagement sets the exact scope: which returns are included, how often we meet, and the fee. Nothing begins until you agree to it.
Getting started
How a working relationship begins
Anchor & Flint is intentionally selective so each athlete gets consistent attention. The first step is simply a conversation, so both sides can decide whether working together makes sense.
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Book an intro call or send a message
Schedule a complimentary 20-minute call, or tell us about your situation through the contact form. You do not need to send documents or financial details at this stage.
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Talk it through
We discuss where your NIL income comes from, what questions you have, who else is involved, and what kind of support fits. The call is for understanding your situation, not for completing a tax strategy.
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Agree on a clear scope
If it makes sense to continue, a written engagement sets out the work, the returns included, how often we meet, and the fee. Nothing starts until you agree to it.
Your CPA
Matt LaFleur, CPA
Matt is a Certified Public Accountant licensed in Ohio and California, with more than a decade of accounting, tax, and advisory experience. He has also worked in a collegiate athletic department, so he understands the schedules and support systems athletes work within, and he explains unfamiliar financial decisions in plain language.
More about MattA good fit
Built for athletes who want structure
Anchor & Flint works best with athletes who are earning meaningful NIL income, often for the first time, and who want a professional keeping watch throughout the year.
- You want to understand your taxes, not just have them handled.
- You are willing to track income, keep documents, and set money aside.
- You value a steady relationship across seasons, not a one-time fix.
- A parent, guardian, or advisor may be part of the conversation.
Where we are probably not the right choice
We are selective because focus is what makes the work good. If you are looking for any of the following, another firm will likely serve you better, and we are happy to say so early.
- A one-time tax return with no ongoing relationship
- Aggressive strategies promising large tax savings
- Help that does not include keeping records or planning ahead
Resources
Straight answers to common NIL tax questions
Plain-language guides based on current IRS and NCAA information, with sources listed on every article.
What to do after your first NIL payment
A practical checklist for college athletes after a first NIL payment arrives, covering forms, records, setting money aside for taxes, and athletic reporting.
How estimated tax payments work for NIL income
When NIL income has no tax withheld, the IRS may expect quarterly estimated payments. Here is who pays, when payments are due, and how amounts are figured.
Talk through your situation
A complimentary 20-minute intro call is a chance to talk through what you are earning, what questions you have, and whether ongoing help from Anchor & Flint makes sense. Parents, guardians, and advisors are welcome to join.