Protecting Student Athletes from Unexpected Tax Liability Act

The bill would require income tax withholding at a rate of 30 percent on name, image, and likeness (NIL) payments made to student athletes, treating such payments as wages for tax withholding purposes even if the athletes are not classified as employees. It applies to full-time students participating in intercollegiate athletics who receive cash, property, or services for the commercial use of their name, image, or likeness. The bill also waives underpayment penalties for new student athletes in their first year under the rule and mandates a Treasury Department report by 2029 on the policy’s effects, including compliance and the accuracy of the 30 percent rate. The provisions would take…

No official summary is available here. This one was written by AI from the bill’s text.