NIL glossary
What is Form 1099-NEC?
Form 1099-NEC is the IRS form a business uses to report nonemployee compensation it paid someone, including an athlete paid for NIL work, and for payments made in 2026 it is required once a payer pays $2,000 or more in a year.
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In detail
The threshold was $600 through 2025 and rose to $2,000 for tax years beginning after 2025, with inflation adjustments starting in 2027. Income is taxable whether or not a form is issued. Do not confuse it with NIL Go's separate $600 reporting rule.
See NIL taxes.
Frequently asked questions
Is NIL income taxable if I don't get a 1099?
Yes. All NIL income, including products, is generally taxable whether or not you receive a form.
Sources
- Instructions for Forms 1099-MISC and 1099-NEC — Internal Revenue Service
- Topic no. 554, Self-employment tax — 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.