NIL money is self-employment income. Without a plan, you're handing 40%+ straight to the IRS. We help college athletes structure, protect, and keep as much of their NIL earnings as legally possible.
When the NIL check clears, the clock starts. Most athletes find out at tax time — which is already too late to do anything about it.
NIL income isn't a salary. It's self-employment income — meaning you pay both the employee AND employer side of Social Security and Medicare. On top of income tax. Nobody warns you.
You're required to pay estimated taxes four times a year. Miss them and you owe penalties — even if you pay in full in April. The IRS doesn't care that you didn't know.
Did you earn NIL money while playing away games? Do a deal with a brand headquartered in another state? You may owe taxes in multiple states — and most athletes never file them.
An S-Corp election lets you split your NIL income between salary and distributions. You only pay self-employment tax on the salary portion — not the full amount. On $80K, this alone can save $5,000+.
Equipment, coaching, training, agent fees, travel for NIL appearances, home studio setup — these are legitimate business deductions. Most athletes don't track a single one.
A $30K tax bill in April with a $1,500 underpayment penalty hits different when you're 20 years old. Quarterly payments are mandatory. We set yours up automatically.
A SEP-IRA or Solo 401k lets you shelter up to $23,000+ of NIL income from federal tax this year. That's real money you keep — and start building wealth with — right now.
If you earned NIL income in multiple states, you probably owe taxes in each one. Ignoring state filings doesn't make them go away — it creates penalties that compound.
Typical savings for NIL athletes with $50K–$500K in income
These aren't loopholes. They're the same moves every business owner uses — that most NIL athletes never get told about.
Once your NIL income hits a meaningful level, an S-Corp lets you pay yourself a reasonable salary and take the rest as distributions — which are not subject to self-employment tax. This is the single biggest lever available to most NIL athletes.
Saves $4K–$18K+ annuallyYour NIL activity is a business. Equipment, phone, internet, travel for appearances, agent and management fees, photography, video production, gym memberships used for training — all potentially deductible. We help you capture every dollar.
Typically $2K–$8K in missed deductionsSelf-employed individuals can contribute up to 25% of net income — or up to $23,000 through a Solo 401k — into a retirement account that reduces your taxable income dollar for dollar. Start building wealth while you're still earning at peak.
Shelters $3K–$20K+ from federal taxWhen you receive NIL income and when you make purchases matters. Pushing a deal payment into a new year, accelerating deductions, or timing a retirement contribution can shift thousands of dollars from one tax year to another.
Situational — often $1K–$5KWe calculate your exact quarterly obligation, set up a system so you never face a penalty, and make sure you're not over-withholding either. Your money should be working for you between payments — not sitting in the IRS's pocket early.
Avoids $500–$2K in annual penaltiesNIL income earned in another state — through an appearance, a shoot, or a deal with a company domiciled elsewhere — can create state tax obligations. We identify where you owe, file correctly, and make sure you're not paying twice on the same income.
Prevents compounding state penaltiesBuilt for athletes who have other things to worry about. You give us 30 minutes. We handle the rest.
Short intake form. NIL deals, income amounts, what states you're active in. No tax jargon required.
We assess your situation, identify every savings strategy that applies, and send you a flat-fee quote before we start.
1099s, contracts, any prior returns. Secure portal. We tell you exactly what we need — nothing more.
Return filed, quarterly payments set up, and a plain-English summary of what we did and what to do next year.
You know the number before we start. No hourly billing. No "it got complicated" conversation.
Under $75K in NIL income. No S-Corp yet. Clean Schedule C return with quarterly plan.
$75K–$300K. S-Corp formation, 1120-S business return, personal 1040, multi-state, and full strategy.
$300K+. Full advisory relationship, unlimited states, deal-by-deal reviews, and pro transition planning.
keepthebag.tax is powered by Mitchell & Mitchell CPAs, LLC — a CPA-owned firm with over 40 years of experience. We work with athletes, business owners, and high-income individuals who need real tax strategy — not software and a prayer.
The NIL check is the easy part. The IRS bill four months later is what nobody prepared you for. We fix that — before it happens.
Two minutes to reach out. We'll review your situation, tell you exactly what we can save you, and get your plan started.
KEEPTHEBAG.TAX · POWERED BY MITCHELL & MITCHELL CPAs, LLC · EST. 1983
Yes — every dollar. NIL income is self-employment income, which means federal income tax, self-employment tax (15.3%), and state taxes where applicable. There is no athletic exemption.
An S-Corp is a business structure that lets you split income between salary (taxed fully) and distributions (not subject to self-employment tax). Once you're earning $40K+ in NIL, it almost always makes sense. We'll tell you exactly if and when it's right for you.
Yes. We review prior returns regularly and find missed deductions, incorrect SE tax calculations, and unfiled state returns. An amended return can recover money you already overpaid.
No — the earlier the better. Getting your structure right in year one is infinitely easier than cleaning up three years of mistakes later. Even at $20K, setting up quarterly payments alone can save you a penalty.
We handle that transition too. Pro contracts, signing bonuses, agent fees, relocation expenses, multi-state income — all of it changes dramatically from NIL. The NIL Elite tier includes pro transition planning.
No. Everything is handled through our secure online portal, email, and calls. We work with athletes nationwide. You focus on your sport — we handle the paperwork.