NCAA settlement approved - schools now can (and will) directly pay athletes

[jficke13]

Seems like a tax nightmare for these kids.  The 24% single tax bracket starts at $100,000. As they will be independent contractors they will have a 15.3% self employment tax. In addition they may have state income tax in each state they play a game in!

I'd hope that the athletic departments are giving the players some support on this front. e.g. "Set up account X, withhold amount Y, etc." Just tossing 17-22 year olds a big ole novelty check and hoping they don't get scooped up by the IRS is probably not gonna end up in a Best Practices case study.

[The Sultan]

I'd hope that the athletic departments are giving the players some support on this front. e.g. "Set up account X, withhold amount Y, etc." Just tossing 17-22 year olds a big ole novelty check and hoping they don't get scooped up by the IRS is probably not gonna end up in a Best Practices case study.

While I do hope they get good advice, a lot of them have agents and parents who can help them navigate this as well.

[Jay Bee]

It's only a matter of time before "kids" are in major tax trouble

[Uncle Rico]

It's only a matter of time before "kids" are in major tax trouble

lol