I’m sure some schools go more in-depth than others in trying to educate their kids. I know it will go in one ear and out the other for some but if they do a good job of emphasizing it they’ve done their job.
This is where good parenting comes in.
Welcome to the real world. Uncle Sam always has his hand out and expects it to be filled!
Good parenting, and good education by the schools for their athletes. Which is self-preservation; they don’t need the IRS coming after Johnny Quarterback because he didn’t file his return today.
I was self employed for all of 2021 and the second half of 2020, so I was kinda in the same boat as these athletes; nobody was withholding for me either. It finally sank in last summer that I needed to start making estimated tax payments. Didn’t pay enough, so I still owed Uncle Sam a bit of money when I filed yesterday, but not nearly what it would have been if I hadn’t started the payments.
I was told one school shies away from getting too involved in taxes because of possible liability issues.
Yep you got to be real careful with that.
I would be shocked if every Power 5 school had not been contacted by a CPA firm willing to help with this aspect of the NIL. Whether or not they accepted that help or provided some other resource…who knows. I do know the UofA was offered assistance and they said they had it covered.
Since the schools need show as much distance as possible in the NIL deals, not sure if the school(s) can do much other than some advice from accounting professors, but not the schools legal accts dept. Dont think they can hire CPA firms either to consult the athletes. Basically up to the individual after you’re 18 years old to file taxes. A lot depends on how these corporations / companies file these athletes as their employees or as independent contractors.
Some will learn the hard way down the road.
If you watched Arkansas’ first press conference in San Francisco, you probably heard some of the players being asked about this by a reporter from the WSJ. Jaylin answered for the group. He was like, yeah, my mom is helping me out with that. I’m focused on the next game, though.
The best class I took during all of my course work through undergrad and two Master’s degrees was a Tax class in my MBA. I would bet the University has one. I don’t think it should be a worry for the university if all coaches basically “Required” any players receiving NIL to take the course. Maybe they don’t have one for undergrad but they should.
I will say, as a longtime taxpayer who shifted from W-2s to 1099s, that it’s a whole different world for the “self-employed”, which is what these players are under NIL. I’m glad I’m back in the world of W-2s again.
I personally think a course in personal finance involving taxation should be required for college students, athletes or not. It’ll do a lot more to prepare them for life than a lot of the crap I took somewhere in my 280+ college credits.
Will be a great life lesson for many kids. Also very painful for the kids who don’t have much guidance.
2 Likes
Elementary, middle school, high school and college.
2 Likes
Yes to this. RD are you saying these levels have it or Need to teach it!!
Need to teach. No idea if they are or not. Probably not.
Way back in the late 60’s we had a class at Dollarway PB called Family Relations. It covered a lot of subjects pertaining to families including finances. The teacher was the Home Economic lady. It was divided pretty much 50% by gender. Many of us took it to avoid real classes but it turned out to be useful IMO.
1 Like
I remember in one of my high school math classes we learned how to balance a checkbook.
1 Like
This topic was automatically closed after 30 days. New replies are no longer allowed.