On this page
- What is Name, Image, Likeness (NIL) income
- When to report NIL income
- How to report NIL income
- Paying tax on NIL income
- More resources
What is NIL income?
If you are a student-athlete and you receive any monetary or financial gain, in cash or non-cash, from a transaction in which you benefit from the use of your name, image or likeness, that gain is Name, Image and Likeness (NIL) income.
Effective July 1, 2021, the National College Athletics Association (NCAA) adopted the Interim NIL Policy, which lets NCAA student-athletes benefit from their NIL without jeopardizing their NCAA eligibility.
Sources of NIL income
- Content creator/social media influencer
- Brand endorsements
- Sponsorship deals
- Autograph fees
- Promotional appearances
- Marketing brands
- Guest appearances at clubs and schools
- Exhibitions
- Endorsements
- Gifts
- Giveaways (gift cards)
Generally, all income from NIL activities is considered taxable income, including non-cash compensation, like merchandise or gift cards.
When to report NIL income
You need to file a tax return if you made at least $400 in NIL self-employment activities (to report your self-employment tax) or if your total income is more than the standard deduction. The amount of the standard deduction depends on your income and whether anyone can claim you as a dependent.
Before you receive NIL income
Accurately complete Form W-9. Request for Taxpayer Identification Number and Certification or Form W-4, Employee’s Withholding Certificate.
How to report NIL income
Student-athletes are generally considered independent contractors for tax purposes and receive Forms 1099 if their income is $600 or more from one source.
- File a Schedule C, Profit or Loss from Business, with Form 1040 to report self-employment income and related expenses.
- File a Schedule E, Supplemental Income and Loss, with Form 1040 to report income from royalties and certain other types of income and related expenses.
- Document and track all expenses incurred in generating NIL income.
NOTE: Income or benefits you received as a student-athlete must be included in taxable income on the FAFSA (Free Application for Federal Student Aid) application and could impact the amount of financial aid granted. Pell grants are based on other factors but can also be impacted by NIL income.
State taxes
Keep track of the locations where you perform NIL contract services, because you may owe state tax to a state where you earn income from NIL activities.
Consider consulting a CPA or other tax professional before accepting an NIL contract to understand state filing impacts and to help you meet state filing requirements.
Additional resources to help you file
- File your taxes for free
- Tips for choosing a tax return preparer if you are considering choosing a professional to help you file
Paying tax on NIL income
When you earn NIL income, there’s typically no tax withheld. You may need to make estimated tax payments to cover your income, Social Security and Medicare taxes throughout the year. Doing so may help you avoid a large tax bill and related penalties. Use Form 1040-ES, Estimated Tax for Individuals PDF, to figure these required tax payments.
If you don’t file the required tax returns on time, or if you fail to pay taxes you owe, you could be subject to additional penalties and interest.
If you owe tax or penalties, pay the balance as soon as possible to avoid additional penalties and interest. The IRS has various options to make a payment.
IRS online account
An IRS Online Account offers immediate access to your individual federal tax information. Your online account may have information you could need before or after the filing of your tax return.
More resources
- Do I Need to File a Tax Return?
- Self-Employed Individuals Tax Center
- Tax Information for Students
- Earned Income Tax Credit
- Tax Credits for Individuals: What They Are and How They can Benefit Taxpayers