What experience do you have working with student-athletes, particularly those earning NIL income?
It’s important to work with a CPA who understands the unique financial challenges student-athletes face, including managing fluctuating income from NIL deals and sports scholarships.What are the tax implications of NIL income, and how can my child minimize tax liability?
Ask about the specific tax responsibilities related to NIL earnings, including potential deductions, exemptions, and how best to plan for taxes on self-employment income.Should my child set up a business entity (such as an LLC or Sole Proprietorship) to manage their NIL income, and what are the benefits?
Inquire if creating a formal business structure is a good strategy for managing NIL income and potential tax benefits or protections it offers, especially as income from NIL can vary.How should we track NIL income and expenses for tax purposes?
Ask for advice on how to track NIL earnings and related expenses (like agent fees, marketing, and travel) to ensure accurate reporting and maximize allowable deductions.How can my child effectively save or invest NIL earnings for the future?
Discuss strategies for saving and investing NIL earnings, particularly if the income is unpredictable. The CPA should help create a plan for managing short-term earnings for long-term financial security.What are the self-employment tax responsibilities, and how can we plan for them?
Since NIL income is typically considered self-employment, ask about self-employment taxes and how to prepare for the 15.3% tax rate for Social Security and Medicare.How does NIL income impact eligibility for financial aid or scholarships, and what do we need to report?
It’s important to understand how NIL earnings could affect financial aid or athletic scholarships, and the CPA can help navigate how to properly report these earnings to ensure compliance.What are the best strategies for minimizing taxes while maximizing NIL earnings?
Inquire about tax-saving strategies that may apply specifically to student-athletes, such as deductions for training, travel, or promotional expenses, and how to stay compliant with tax laws.What should we know about retirement planning, even for a student-athlete with short-term NIL income?
Even if your child’s athletic career is brief, it’s important to start thinking about the future. Ask the CPA about options for setting up retirement savings, such as a Roth IRA, and how to incorporate long-term planning into their financial strategy.How can you help with financial planning for life after sports, including education, career development, or investments?
The CPA should provide insight into how to manage NIL earnings not only during the athlete’s career but also after their time in sports, ensuring your child is financially prepared for their next chapter, whether that’s further education, career transition, or entrepreneurship.
For any additional questions or guidance, feel free to reach out to me at in**@**********************es.com. I’m here to help guide your family through the complexities of managing NIL income and making informed financial decisions.
These questions will help ensure your child gets the expert financial guidance they need to make informed decisions, minimize tax liabilities, and plan for a successful future.