As April 15 approaches and you grind away on your taxes, you may wonder what the reporting requirements are for Florida State’s student-athletes who receive scholarship money and/or Name Image and Likeness compensation. On what are they required to pay tax?
The Osceola reached out to Cathy Jones for answers. Cathy is the Program Director for Audits and Compliance in the Florida State Office of Financial Aid and happens to be the wife of FSU men's golf coach Trey Jones.
“Per IRS regulations, any payment beyond tuition, fees, books or supplies is subject to tax,” Jones said succinctly.
Scholarship recipients receive a1098-T from the university for everything else, including living expenses (housing and food), transportation and personal expenses, which are now included in the cost of attendance.
According to FSU’s Cost of Attendance website there are appreciable differences in the amount of scholarship aid a recipient may receive based on a variety of factors, including whether they are an in-state out-of-state student and where they reside.
An in-state student who lives on campus receives $25,398 in scholarship benefits, of which $18,544 is taxable (living expenses, transportation and personal). The non-taxable portion of their scholarship is $6,854 (tuition, fees, books and course materials, supplies and equipment).
The Osceola talked with representatives of both Batlles End and Rising Spear and they confirmed that athletes receiving NIL compensation receive a 1099 from the entity they signed the NIL deal with. Taxes are not withheld on 1099s, so the players are responsible for saving enough to pay those taxes at the end of the year.
Should the House v. NCAA settlement be signed by Federal Judge Claudia Ann Wilken on April 7, approving revenue sharing, players who receive revenue-sharing payments in 2025 will be issued a tax document for the amount they receive and will be responsible for paying those taxes as well.
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