Taxes Ain’t Just for the Rich: What Every Athlete Needs to Know

If You Can’t Read the Contract, You Might Already Be Losing

Let’s cut the noise.

You’ve trained your body, sacrificed your time, and finally started earning real money.
Maybe it’s NIL. Maybe it’s a brand deal. Maybe you’re getting league checks.

Cool.

But let me ask you something:

Do you know where that money’s going?
Do you know what you’ll owe in April?
Do you know how to protect yourself if the IRS comes knocking?

Most athletes don’t.

And that’s not by accident — it’s by design.

Because if they can keep you focused on the game and distracted from the business behind it, they can eat off you forever while you end up “starting over” at 32.

But not you.
Not after this.

This is the blog they never wanted you to read.
Let’s talk about the real tax game — and how to stop being its victim.

Let’s Be Clear: Taxes Are Not Just a “Rich People Problem”

Too many athletes walk around thinking,
“I don’t make that much — I’ll deal with taxes later.”
Or worse:
“My CPA handles that.”

That mindset? It’s a setup.
Because whether you’re making $10K or $10 million, taxes are coming for you.

They don’t care if:

• You’re a college sophomore
• You just signed your first pro deal
• You still live at home

The IRS isn’t waiting on your maturity.
They’re watching your deposits.

So let’s stop pretending this doesn’t apply to you.

The Two Tax Systems: Employee vs. Self-Employed

Understanding how the IRS sees you is step one.

1. Employee (W-2)

If you’re on payroll — say as a team trainer, staff member, or part-time worker — your employer takes taxes out of your check before you even touch it.

This is the W-2 world.

2. Self-Employed (1099)

If you’re getting NIL money, brand deals, affiliate checks, freelance video editing, or coaching income — you’re self-employed.

Nobody takes taxes out for you.
It’s on you to track, save, file, and pay.

This is the 1099 world — and this is where most athletes mess up.

You get paid $5,000 and think, “I’m up.”
But that money’s not all yours.
Roughly 25–35% of it belongs to the government — and if you spend it all, you just stole from the IRS.

They’ll come collect. And they don’t knock softly.

What Is Self-Employment Tax?

Here’s the raw version:

When you're self-employed, you're both the boss and the employee.
Which means you pay both halves of Social Security and Medicare taxes.

That’s:

• 12.4% for Social Security
• 2.9% for Medicare
• Total: 15.3% — just for existing in the system

And that’s before your federal and state income taxes even hit.

So if you made $50K from NIL deals and think you're keeping all of it?

You’re not.

Depending on your deductions and where you live, you might only keep $30K–$35K after taxes.

If you didn’t save for that, you’re going into panic mode when tax season hits.

What’s a 1099 and Why It’s Not “Free Money”

A 1099 is the form businesses send to independent contractors — which is what you are if you're being paid for NIL, sponsorships, freelance work, or speaking.

If someone pays you more than $600, they’re supposed to send you one.
If they don’t, you’re still required to report that income.

Here's the catch:
You get the full amount, untouched — which means it’s your job to pay the taxes later.

Most athletes don’t.
They spend it all.
Then April hits.
And it’s a disaster.

What You Can Write Off (If You Structure Your Brand Like a Business)

Here’s the power move nobody teaches us:

You can’t avoid paying taxes, but you can reduce how much you owe — legally.

Enter: Write-offs (a.k.a. Business Deductions)

If you form an LLC for your athlete brand, you can write off expenses like:

• Gym memberships
• Training sessions
• Cleats and gear
• Travel to games or events
• Flights, hotels, meals (for brand-related business)
• Laptop, camera, mic, editing software
• Merch production
• Website fees
• Phone bill (business use %)

Let’s say you made $40,000 in NIL income and spent $15,000 building your brand.
You’re only taxed on $25,000 now — not $40K.

That’s called tax strategy, not tax evasion.

But here’s the key:

You need to keep receipts. You need to have a separate business account. You need to be organized.

If the IRS audits you and your records are sloppy, they’ll tax you on the full amount — plus interest and penalties.

How Quarterly Payments Work (and Why You Might Owe Even More If You Skip Them)

If you’re self-employed and expect to owe more than $1,000 in taxes for the year, the IRS wants you to pay quarterly.

These dates don’t change:

• Q1: April 15
• Q2: June 15
• Q3: September 15
• Q4: January 15 (of the following year)

Fail to pay?
You’ll owe underpayment penalties, even if you pay your full tax bill later.

Solution:
Set aside 30% of every check into a high-yield savings account.
That’s your tax account. Non-negotiable.

What Happens If You Don’t Handle This?

Let’s be real.

Ignoring taxes can:

• Destroy your credit
• Lead to liens on your bank account
• Trigger penalties and interest that double your bill
• Put you on the IRS radar for life
• Wipe out your NIL profits and more

This isn’t a scare tactic.
This is what’s happened to hundreds of pro athletes who made millions and still ended up bankrupt.

They didn’t know the rules.
They trusted the wrong people.
And they didn’t respect the IRS.

That can’t be you.

Why “I Got a CPA” Doesn’t Mean You’re Safe

A lot of athletes delegate too early.

“My CPA handles that.”
“I don’t really get it — my guy does everything.”

That’s how you get played.

You don’t need to be a tax expert.
But you do need to know:

• What you owe
• What’s deductible
• When to pay
• What forms you’re filing
• What your strategy is

If your CPA can’t explain things in plain English, you either need to push harder — or find a better one.

Because at the end of the day, you sign the forms.
And the IRS doesn’t care who messed up — you’re the one held accountable.

The “Jock Tax” — The Silent Assassin in Pro Sports

Here’s something most college and rookie pro athletes don’t know — and it’ll sting.

If you get paid to play in different states, each state can tax you for income earned during games played there.

Let’s say you play for the Lakers but have away games in:

• Texas
• Illinois
• Florida
• New York
• Colorado

Every one of those states might want a piece of your check.

This is called the Jock Tax.

It means:

• More tax returns
• More paperwork
• More planning
• More reasons to get caught slipping

We’ll go deeper into this in a future post, but for now?
Just know it’s real.
And if you go pro — this becomes your problem.

Talk to your CPA about it before your first season, not after.

Game Plan: What You Need to Do Right Now

1. Track Every Dollar You Make

Use a simple spreadsheet, Google Sheet, or software like QuickBooks or Wave.

Track:

• Date
• Source of income
• Amount
• Whether a 1099 was issued

2. Track Every Expense (With Receipts)

Set up folders — physical or digital.

Categories:

• Travel
• Equipment
• Marketing
• Coaching
• Tech
• Office
• Meals

3. Get a CPA Who Understands Athletes or Creators

Not your uncle’s tax guy.
Not some chain storefront during tax season.

You need someone who:

• Understands 1099 and self-employment
• Works with personal brands
• Gets NIL and influencer law
• Explains things clearly
• Files quarterly estimates

4. Open a Business Bank Account and Separate the Money

If you have an LLC, open a business checking account.

Only run business income/expenses through it.
This builds credibility, clarity, and makes audits easier to survive.

5. File Early. Pay Quarterly. Ask Questions.

Don’t wait until April to scramble.
Get ahead. Be proactive. Own your money moves.

Strategic Takeaways

1. You Are the CFO of Your Life Now

You’re not just the talent anymore.
You’re the brand. The product. The LLC. The investment vehicle.

Act like it.

2. CPA ≠ Savior

Having a professional doesn’t mean you’re off the hook.
It means you have to manage them like a teammate.

You’re still responsible.
And that’s a good thing.

3. Taxes Are a Tool When You Know the System

Once you understand taxes, you stop fearing them — and start using them.

You write off.
You reduce.
You invest through your business.
You keep more of what you earn.

That’s real power.

Final Word: Pay the Game Before It Takes Everything

Too many athletes treat taxes like a scary bill they hope to dodge.

But the truth?

Taxes are the tuition you pay to play the financial game.
And the smart ones learn early — so they stop paying more than they should.

Let everyone else flex and fumble.

You?
Get organized. Get educated. Get ahead.

Written by Artizsoul Newsroom
This ain’t just about getting paid — it’s about keeping it.

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