Protecting Student Athletes from Unexpected Tax Liability Act

This bill would require anyone paying a college student athlete for the use of their name, image, or likeness to withhold federal income tax from the payment, as if it were wages. The amount withheld would be 30 percent of a cash payment, or 30 percent of the fair market value of non-cash payments. Student athletes could choose to opt out of this withholding. The bill would waive the penalty for underpaying estimated taxes one time for student athletes covered by the rule, and it would apply to payments in tax years starting after December 31, 2027. The Treasury Secretary would have to report to Congress on the effects of the withholding by December 31, 2029.

Full text and official record on Congress.gov

Sponsors

• Terri A. Sewell Democrat sponsor
• 1 cosponsors