Do I have to pay taxes on NIL money?

The 30-second answer

Yes. NIL income is self-employment income. Nothing is withheld, so you owe income tax plus self-employment tax, and you may need to make quarterly estimated payments. Plan on setting aside about 30% of every check.

Written by Pam Rodriguez, CFP®.

Build your next step

Explore more athlete money questions · See the Athlete Wealth System™ · Apply to work with us