re: with NIL, I bet the transfer portal is going to get even busier

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These guys need actual financial advice

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This will be the biggest thing for athlete that may earn large amounts. State income tax could drive students to specific states and play there. That is on top of Federal taxes.

A few states have no income tax which means all they earn is at least state tax free if their residency is in that state.

But it will also determine how they claim or their parents claim. If they are being claimed by their parents they will pay any taxes in their parent's state. Most college athletes are still being claimed as dependents.

But they could determine it is not advisable to be a dependent as to set up residency in their new state or their parents may no longer want to claim them because they push them to a higher income bracket.

Then you got the greedy state laws that professional athletes have to deal with at times. There is a possibility to be taxed in multiple states where the games are played.Lets say MS can determine the athlete earned his promotional money due to his performance in 12 regular season games the state of MS could say you played both Ole Miss and MSU in the state of MS this year. So 2/12th of your NIL money is being taxed in our state

So having someone that knows how to financially deal with this will be key. For many this will be the first time they will be receiving 1099s even for items instead of cash based on the value of the item.

Again for most they might not have to deal with it as they will make very little but some will. Each one should probably set up their own LLC(personally) to prevent from being sued, provide liability insurance, and to funnel the money through.

These handlers have no clue how to deal with any of this.