NIL Money And Taxes: What College Athletes Owe The IRS, The FAFSA, And Their Agent

College athletes are getting paid, and many of them don’t know what to do with it to maximize their long term wealth. The money arrives with no tax withheld, no benefits attached, no HR department explaining anything, and a set of rules that punish anyone who assumes a paycheck is a paycheck.The window is short, too. NCAA data puts the odds of a draft-eligible football player getting drafted at 1.4%, and men’s basketball at 1.0%, while the NCAA’s own GOALS research found roughly 74% of FBS football players believe they’ll go pro. That gap is where the financial damage happens.The money comes from selling their Name, Image, and Likeness, or NIL. And it’s big business in college sports today.Here’s how the money works, what it costs, and what to do with what’s left.