NIL Parent Quick Start Guide
5 Things Every Parent Should Know About NIL Income
1. NIL Income is Usually Taxable
When your athlete gets paid through NIL, taxes are often not withheld.
That means part of that money may need to be paid to the IRS later.
Rule of thumb: Don't assume the full payment is theirs to spend.
2. Save 30% for Taxes
One of the easiest ways to avoid surprises is to save approximately 30% of every NIL payment.
Example:
NIL Payment: $5,000
Tax Savings: $1,500
Available to Spend: $3,500
3. Keep Good Records
Make sure your athlete saves:
✓ Contracts
✓ Payment records
✓ 1099s
✓ NIL-related receipts
A simple Google Drive folder works.
4. Ask These 3 Questions
Ask your athlete:
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How much NIL income have you earned this year?
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How much have you saved for taxes?
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Where are your contracts and payment records stored?
If they can't answer those questions, that's where to start.
5. Build Habits Early
The athletes who benefit most from NIL aren't always the ones earning the most money.
They're the ones who learn how to manage it.
Simple habits like saving for taxes, tracking income, and staying organized can make a huge difference long after NIL ends.
COMMON PARENT QUESTIONS:
Q: Can my athlete still be claimed as a dependent?
A: Possibly. NIL income alone does not automatically prevent a parent from claiming their athlete.
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Q: Can NIL Income affect financial aid?
A: Potentially. Families receiving need-based aid should discuss significant NIL earnings with their school's financial aid office.
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Q: Does my athlete need to file taxes?
A: In most cases, yes.
Need More Help?
Questions about NIL taxes or finances? ​​​​
Elaizah Flores, MBA | Founder