Correct. And since they aren't paid by the universities/states (as they aren't employees), the amounts don't have to be reported.I think the only accurate answer is that nobody knows. NIL doesn’t move money out from under the table. It just makes payments under the table permissible. The payments are still private (mostly, not all) and most don’t involve the university—at least for headline players. A player can have NIL deals with different individuals, businesses, or collectives.
To be clear. Not reported by the University.Correct. And since they aren't paid by the universities/states (as they aren't employees), the amounts don't have to be reported.
To be clear. Not reported by the University.
The amount paid should be reported by the payor. Either a W-2 or 1099.
It should be reported by the athlete as taxable income for Federeal tax. Varies by State. No state income tax on earned income in TN.
Things change including tax laws, but as far as I know this is still true.
I think the only accurate answer is that nobody knows. NIL doesn’t move money out from under the table. It just makes payments under the table permissible. The payments are still private (mostly, not all) and most don’t involve the university—at least for headline players. A player can have NIL deals with different individuals, businesses, or collectives.