Taxes are one of the biggest surprises for student-athletes earning NIL income. Unlike a paycheck from a part-time job, NIL money usually comes with no taxes withheld—which means the IRS will expect you to handle it on your own. That’s why choosing the right CPA (Certified Public Accountant) is one of the most important financial decisions you can make in the NIL era.

Why You Need a CPA for NIL

  • Independent Contractor Status: Most NIL athletes are self-employed in the eyes of the IRS.

  • Multiple Income Streams: Social media, appearances, endorsements, and merchandise all generate taxable income.

  • Quarterly Taxes: The IRS expects self-employed athletes to pay throughout the year—not just at tax time.

  • Deductions & Write-Offs: A good CPA knows how to lower your tax bill legally by tracking business-related expenses.

What to Look for in an NIL CPA

1. Experience With Athletes or Self-Employed Clients

NIL is new, but CPAs with a background in sports, entertainment, or freelance work understand irregular income and complex deductions.

2. Understanding of State Laws

Since NIL deals can span states—or even countries for international athletes—you need a CPA who can navigate multi-state taxes and reporting.

3. Proactive Guidance

The right CPA doesn’t just file your taxes in April—they help you plan ahead, estimate quarterly payments, and avoid surprises.

4. Clear Communication

Look for a CPA who explains things in plain language. If you don’t understand what they’re saying, they aren’t the right fit.

5. Tech-Friendly & Accessible

Since student-athletes travel and juggle busy schedules, find a CPA who uses digital tools for secure document sharing, e-signatures, and virtual meetings.

Questions to Ask Before Hiring a CPA

  • Do you have experience working with athletes or NIL clients?

  • How do you charge—flat fee, hourly, or based on complexity?

  • Will you help me plan for quarterly taxes?

  • How do you handle deductions for things like travel, equipment, or branding costs?

  • What’s your process for communicating during the year?

Red Flags to Avoid

  • Promises of “no tax owed” without explanation.

  • Lack of familiarity with NIL or self-employment income.

  • Poor communication or slow response times.

  • Fees that aren’t clearly explained up front.

Final Takeaway

Choosing the right NIL CPA isn’t just about filing taxes—it’s about building a financial foundation that protects your income, avoids penalties, and sets you up for long-term success. Look for someone who understands athletes, communicates clearly, and helps you stay one step ahead.