A 1099 is an IRS tax form used to report income earned outside of traditional employment.
Unlike a W-2 paycheck, no taxes are withheld upfront on 1099 income.
That responsibility falls entirely on the athlete.
For modern athletes, especially in the NIL and endorsement era, 1099 income is everywhere.
Sponsorships, appearances, social media deals, licensing, prize money, and freelance work are commonly reported via 1099 forms.
If you’re earning money without being on payroll, you’re almost certainly dealing with a 1099.
The upside: flexibility and deductions.
The downside: tax exposure if you’re unprepared.
How 1099 Income Works
When income is reported on a 1099:
- No federal income tax is withheld
- No state income tax is withheld
- No payroll taxes are withheld
- The athlete is treated as an independent contractor
This means athletes must:
- Track income manually
- Set aside tax payments
- Pay self-employment taxes in many cases
- File quarterly estimated taxes if required
1099 income inflates revenue quickly, but it also inflates tax risk.
How 1099 Applies in Different Leagues
NCAA / NIL Athletes
For NIL athletes, 1099 income is often the first time money shows up without protection.
There is no payroll system, no HR department, and no automatic tax withholding.
This is where many college athletes mistake revenue for disposable income, because no one tells them otherwise.
Use Cases
- NIL sponsorships
- Social media partnerships
- Appearances and camps
- Merchandise and licensing
Example
A college athlete earns $15,000 from a brand deal. The company issues a 1099. No taxes are withheld. The athlete must report the full amount and pay federal, state, and potentially self-employment taxes.
NFL
In the NFL, 1099 income lives alongside W-2 salary.
That stacking effect is where tax exposure quietly accelerates.
Endorsement income doesn’t replace contract income, it adds on top of it, often pushing players into higher brackets without warning.
Use Cases
- Endorsements
- Appearances
- Media work
- Off-field business income
Example
An NFL player earns $500,000 from endorsements reported on 1099s. That income is taxed separately from their base salary and often pushes the athlete into higher tax brackets.
NBA
NBA players frequently earn more through 1099 income than from their salaries over time.
Licensing, endorsements, and image rights deals scale fast and globally.
At this level, 1099 income is not side money, it is a parallel income engine with its own tax gravity.
Use Cases
- Endorsements
- Licensing and image rights
- International deals
- Equity-based compensation
Example
An NBA player earns $8 million in endorsements via 1099s. Even with a guaranteed contract, endorsement income carries its own tax obligations and filing complexity.
MLB
MLB athletes already deal with complex, multi-state salary taxation.
Adding 1099 income increases filing complexity and planning risk.
Without structure, off-field income becomes the part that causes mistakes, not the contract.
Use Cases
- Endorsements
- Promotional appearances
- Off-season income
- Business ventures
Example
An MLB player receives $300,000 in 1099 income from off-field deals.
Combined with multi-state salary income, this complicates state filings and estimated tax payments.
NHL
For NHL players, 1099 income often crosses borders. Payments may originate in the U.S. while residency or play occurs elsewhere.
This disconnect is where compliance errors happen, not because income was hidden, but because it was misunderstood.
Use Cases
- Endorsements
- Media appearances
- Sponsorship deals
Example
An NHL player earns endorsement income reported on 1099s while playing across U.S. and Canadian markets. Currency conversion and cross-border taxes add another layer of complexity.
MLS / International Soccer
International soccer players commonly earn income in multiple countries, currencies, and tax systems, all reported without withholding.
Here, the problem isn’t earning globally. It’s tracking locally.
Use Cases
- Sponsorships
- Image rights deals
- National team appearances
- Off-season endorsements
Example
A soccer player earns $250,000 in endorsement income via 1099s in addition to club salary. Without proper planning, tax liabilities can snowball quickly.
Combat Sports
In combat sports, nearly all income arrives via 1099.
There is no safety net, no smoothing, and no guaranteed paycheck. When income is sporadic, tax discipline becomes survival, not optimization.
Use Cases
- Fight purses
- Sponsorships
- Appearance fees
Example
A fighter earns $400,000 for a bout, all reported on a 1099. Training costs, management fees, and medical expenses must be tracked carefully to reduce taxable income.
Golf / Individual Sports
For individual athletes, 1099 income is the norm, not the exception.
Prize money, sponsorships, and appearances all flow without withholding.
This makes expense tracking and estimated payments part of the job description.
Use Cases
- Prize money
- Sponsorships
- Appearance fees
Example
A golfer earns $1 million in prize money reported via 1099s.
Travel, caddie fees, coaching, and equipment can offset taxable income if properly documented.
Racing / NASCAR / F1
Drivers often receive large sponsorship payments via 1099s tied to performance and visibility.
Income spikes are common. Without planning, those spikes often turn into penalty triggers.
Use Cases
- Sponsorship income
- Appearance fees
- Licensing deals
Example
A driver earns $2 million in sponsorship income reported on 1099s. Without estimated tax payments, penalties can apply even if the year was profitable.
Why 1099 Income Matters
1099 income matters because it removes the guardrails.
Nothing is withheld.
Nothing is automated.
Nothing is forgiven later.
Every dollar earned increases:
- Revenue without withholding
- Triggers self-employment tax in many cases
- Requires quarterly tax planning
- Makes expense tracking critical
- Exposes athletes to penalties if mismanaged
Athletes don’t get in trouble because they earn 1099 income.
They get in trouble because they treat it like salary.
Handled correctly, 1099 income unlocks flexibility, deductions, and long-term control.
Handled poorly, it creates surprise bills, stress, and unnecessary losses.
Mastering 1099 income is the difference between earning independently and paying recklessly.
For many athletes, 1099 income is the difference between appearing wealthy and being financially stable.
Apostle Sports Media 