NIL glossary
What are estimated taxes for NIL income?
Estimated taxes are payments of income and self-employment tax made during the year on income that has no tax withheld, such as most NIL income, using IRS Form 1040-ES.
On this page
In detail
The IRS generally expects estimated payments four times a year, and underpaying can bring penalties. A simple habit is to set aside part of every NIL payment for taxes. See NIL taxes.
Frequently asked questions
Do I need to pay estimated taxes on NIL income?
Often yes, if you expect to owe tax that is not covered by withholding. A tax professional can help you figure the amount.
Sources
- Estimated taxes — Internal Revenue Service
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.