If you’re a financial advisor working with college athletes, here are tips for helping your clients manage name, image and likeness-related tax responsibilities effectively:

• Educate Your Clients Early

Simplify complex tax matters and help young athletes understand the financial commitments tied to NIL income. Providing guidance on record-keeping, tax brackets, and potential write-offs establishes trust. Also, helping your athlete track filing deadlines is crucial.

• Encourage Budgeting for Taxes

Recommend that clients set aside 30-40% of their NIL income for taxes to ensure they’re prepared when payments are due.

• Advise on Saving and Investing

Once tax obligations are met, help clients make the most of their remaining earnings through savings and investment strategies. Consider advising them on retirement accounts, like SEP IRAs, which can also offer tax benefits.

• Navigate State and Local Tax Obligations

Assist athletes in identifying which states they need to file taxes in and leverage your expertise to minimize their overall tax burden.

Your guidance is crucial to the long-term financial success of your client. Having a CPA working alongside you to keep your client compliant is also crucial. Reach out to Holbrook & Manter today to form a partnership.