I’ve read stories about athletes who are making solid NIL money, but have so many questions about taxes. In many cases, we don’t learn about this stuff in school.
As an athlete, I learned so much about money from my parents, but never realized the impact of taxes until I started working full time. If you’re an NIL earner, an entrepreneur, or if you work a part-time/ full time job, it’s important to you understand tax basics. Doing so will save you a lot of stress, time and money.
Here are a few tax questions athletes might have before tax season arrives , which can help you prepare for filing time.
Understanding Tax Statements: When Will They Arrive?
I’ve made money from NIL or from working part-time. How will my tax statements arrive?
Depending on the type of NIL partnership or job you have, you might receive your forms electronically or in person from your employer. I’ve experienced both:
- Some jobs handed out tax statements, giving me printed copies or mailing forms I can use to file for my taxes.
- In more recent jobs I’ve had, it was my responsibility to download them from our employee portal.
It’s important to read all communications you receive from your employer, especially if it’s a email that says “your tax statements are ready!”
What types of documents am I looking for?
Depending on the type of work you do, you could receive multiple documents, including:
- Form W-2, Wage and Tax Statement. This is the form that shows our total wages and income tax withholdings for the year.
- Form 1099- Miscellaneous Income. This is the form you’re required to fill out if you do freelance work (e.g. NIL partnerships) or contract work for another businesses
When will my tax statements arrive?
If you’re sent tax documents electronically, you should receive them by January 31st. If the documents are schedule to arrive via snail mail, you’ll probably receive them a little bit after that.
What happens next? How long do I have to file for my taxes?
Tax day is usually the same time each year, April 15. This should give you pleanty of time to file your taxes, however, you can request a filing extension in some cases.