H.R. 10236
Protecting Student Athletes from Unexpected Tax Liability Act
Summary:
• Requires 30% income tax withholding at the source on name, image, and likeness (NIL) payments made to student athletes classified as independent contractors, treating such payments as wages for withholding purposes
• Student athletes may elect to opt out of the withholding requirement, and the bill waives underpayment penalties for first-time student athletes subject to the new withholding rules
• Requires the Secretary of the Treasury to report to Congress by December 31, 2029 on the effects, costs, benefits, and payor compliance of the withholding program
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• Student athletes may elect to opt out of the withholding requirement, and the bill waives underpayment penalties for first-time student athletes subject to the new withholding rules
• Requires the Secretary of the Treasury to report to Congress by December 31, 2029 on the effects, costs, benefits, and payor compliance of the withholding program
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