Tax planning strategies for student-athletes

Student-athletes managing multiple income streams, including part-time employment and Name, Image, and Likeness (NIL) earnings, are advised to take specific financial actions before December 31 to reduce their tax liability.

Key strategies include being strategic with the timing of year-end payments. For instance, delaying the receipt of NIL income from brand partnerships until early January can prevent being pushed into a higher tax bracket for the current year.

Additionally, athletes can accelerate deductions by making payments, such as mortgage interest, before the year ends to claim them in the current tax year. Other recommended steps include reviewing W-4 withholdings, making charitable donations, maximizing retirement contributions, and organizing all receipts for wages and brand partnerships to avoid filing surprises.