The Honor System

NIL Tax Calculator

See what an NIL deal leaves after taxes, on your own numbers, free. Part of the Honor System, the money curriculum free to every NYC Honor athlete: how NIL income is taxed, what a contract is really offering, and what to do with what is left.

Why This Exists

An NIL check arrives with no tax withheld. Most young athletes learn that in April, from a bill nobody warned them about. The Honor System exists so ours learn it first, in a classroom, with the math in front of them.

Seven modules, free to every athlete in the program, covering the decisions that arrive with money well before most people are old enough to vote. How a 1099 actually works. What a contract is really offering. What to do with what is left.

7
Core Modules
100%
Athlete Access
$0
Cost to Players
15.3%
The Tax Nobody Warns Them About
Masterclass Curriculum

The 7-Step Blueprint

Module 01

Money Fundamentals

A budget for pay that changes month to month, paying safely, buying smart, and how banks and deposit insurance work.

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Module 02

Understanding NIL Deals

Which NIL rules apply at your school, what a contract is really offering, and the red flags that mean walk away.

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Module 03

NIL and Taxes

Why most NIL checks come with no tax taken out, why free gear counts, and how much to set aside.

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Module 04

Make It Grow

Compounding, inflation, stocks, bonds and funds, and how to spot an investing scam.

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Module 05

Accounts That Build Wealth

Savings and investment accounts, and how NIL pay for work can go into a Roth IRA.

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Module 06

Protect the Bag

The scams that target young athletes, identity theft, credit scores, credit cards before 21, and what debt costs.

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Module 07

Risk and Insurance

How insurance works, what a deductible means, health and car coverage, renters and disability insurance.

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Go deeper: the financial literacy modules  ·  the free NIL course

The rule just changed: for payments made after December 31, 2025, a business only has to send you a Form 1099-NEC once it pays you $2,000 or more in a year. It used to be $600. Here is the part that traps people: that threshold decides who mails you a form, not whether you owe the tax. Once your NIL profit for the year (pay minus real business costs) reaches about $433, you owe self-employment tax on it, form or no form. A $900 deal with no paperwork is still taxable income.

Built by NYC Honor Foundation volunteers. Every module is free to every athlete.

Interactive Tool

NIL Tax Engine

What to Set Aside

Most NIL checks come with no tax taken out. You get the full amount and you owe the IRS later. Put in what you expect to make and see what you should not spend.

Set Aside for the IRS
$0
Gross Income $0
Self-Employment Tax (15.3% on 92.35% of pay) -$0
Federal Income Tax -$0
Left over, before state tax $0
State tax is not in this number. New York and New Jersey both tax this income, and neither is modeled here because we will not put a made-up figure in front of you. Check New York or New Jersey directly, and set aside more than the figure above.
Figures current for tax year 2026. Rates and standard deductions come from IRS Revenue Procedure 2025-32. This is a teaching estimate, not tax advice, and it ignores business expenses and the qualified business income deduction, both of which would lower your bill. It errs toward setting aside too much rather than too little. Anything real goes to a CPA.
Support NYC Honor

This Is What Your Gift Builds

Your gift puts the team on the floor: travel, uniforms and tournament entry for the athletes in the program. The curriculum above is built by volunteers, at $0 cost to every player. Team gifts go to the team; a course sponsor pays only for printed workbooks and translation. Every gift is tax-deductible.

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These are the athletes it serves. Our 17U team reached the MADE Hoops Circuit championship game in July. See the season →