Unionized college athletes: Taxes? What taxes?

[Buller64]

Housing and food are already suppose to be reported as income when filing your return.  Chances are the IRS would still not consider the tuition and books income even if scholarship athletes were designated employees but additional taxes (social security, medicare) would have to be paid on the compensation received.  The benefits would probably not be taxed because what professional athlete gets taxed for training at a team facility.  But athletes may owe state income tax in states they perform.  So players in Florida would owe taxes for road games in other states.

 

From IRS pub 970:

 

If you receive educational assistance benefits from your employer under an educational assistance program, you can exclude up to $5,250 of those benefits each year. This means your employer should not include those benefits with your wages, tips, and other compensation shown in box 1 of your Form W-2. This also means that you do not have to include the benefits on your income tax return.

 

You cannot use any of the tax-free education expenses paid for by your employer as the basis for any other deduction or credit, including the American opportunity credit and lifetime learning credit. This means that the first $5,250 in educational expenses for college athletes can not be used as a tax deduction.

 

 

Educational assistance program.   To qualify as an educational assistance program, the plan must be written and must meet certain other requirements. Your employer can tell you whether there is a qualified program where you work.

 

Educational assistance benefits.   Tax-free educational assistance benefits include payments for tuition, fees and similar expenses, books, supplies, and equipment. (These payments are subject to regular taxes). Education generally includes any form of instruction or training that improves or develops your capabilities. The payments do not have to be for work-related courses or courses that are part of a degree program.

 

  Educational assistance benefits do not include payments for the following items.

1. Meals, lodging, or transportation.

2. Tools or supplies (other than textbooks) that you can keep after completing the course of instruction.

3. Courses involving sports, games, or hobbies unless they:

   1. Have a reasonable relationship to the business of your employer, or

   2. Are required as part of a degree program.

 

Benefits over $5,250.   If your employer pays more than $5,250 in educational assistance benefits for you during the year, you must generally pay tax on the amount over $5,250. Your employer should include in your wages (Form W-2, box 1) the amount that you must include in income.

 

Working condition fringe benefit.    However, if the benefits over $5,250 also qualify as a working condition fringe benefit, your employer does not have to include them in your wages. A working condition fringe benefit is a benefit which, had you paid for it, you could deduct as an employee business expense (these types of expenses must be directly related to the job, would probably include travel, equipment, etc). For more information on working condition fringe benefits, see Working Condition Benefits in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits.

[Jihme]

 

The IRS should go after it.  Additionally, now they'll have to pay union dues.  This falls into that, "Be careful what you wish for..." category.

 

 

apis- i see you are a problem identifier not a problem solver

 

they should go after an under educated kid that is already being exploited!    makes no sense

 

and let cliven bundy keep stealing 

 

if kids were paid fair market value there would be no problem

 

 

I'm sure most would agree that SOMETHING has to be done, but just not so sure unionization is the best way to go about this.  I'm not a tax expert so I don't know of any other ways to make sure their compensation is fair and taxable.

 

to be honest, the worst consequence of this would be if a team went on strike right before a game.  who is to say this couldn't/wouldn't happen if they were unionized?

[2000bull]

if they unionize, would that mean they would do away with walk-ons? If all the players are employees, that means the walk-ons would have to get some form of compensation, right?

[BDYZR]

 

My understanding is that the IRS is being kind by not forcing any food or housing supplied to athletes to be considered income, as it isn't an educational expense. I think we are all aware of how long the IRS's kindness lasts, and unionizing/being deemed an employee would certainly be poking the hornet's nest. This move could come back to bite all college athletes if it stirs the IRS into enforcing housing and food athletes receive to be claimed as income.

 

 

The IRS should go after it.  Additionally, now they'll have to pay union dues.  This falls into that, "Be careful what you wish for..." category.

 

 

Housing and food are already suppose to be reported as income when filing your return.  Chances are the IRS would still not consider the tuition and books income even if scholarship athletes were designated employees but additional taxes (social security, medicare) would have to be paid on the compensation received.  The benefits would probably not be taxed because what professional athlete gets taxed for training at a team facility.  But athletes may owe state income tax in states they perform.  So players in Florida would owe taxes for road games in other states.

 

So you are all OK with the NCAA exploiting the "student athletes"?  Coaches make millions, universities make millions, administrators make millions, everyone makes millions but the people actually playing the games.

 

A lot of the student athletes are concerned with other things besides getting cash in their pockets.  What about student athletes who are injured and can no longer play?  The universities do not have to maintain their scholarship, and they could cut them from the team.  Therefore the player is left with no way to pay for their education, and a life long disability.  Who takes care of those student athletes now?  They gave up their bodies so coaches could make millions, universities could make millions, administrators could make millions, yet they are not even afforded the dignity of completing their education or compensated with healthcare to cover their life long injuries.

 

Do some schools take care of students in those situations?  Some do, but many find ways to worm out of paying for those responsibilites.  Just look at our friend to the east of USF, the good ole UCF.  They had a player die in practice, and the coaches, UCF, and even the State of Florida wormed their way out of compensating his family for the death of the player.  The State of Florida is the worst, since they pass a convenient law that caps money paid out in lawsuits.  It would be nice if private citizens had that type of protection from lawsuits.

 

It is so funny how people get up in arms as soon as they see the word union, as if someone just said Al-Qaeda or Russia.  You know all those things that you enjoy such as:

• Actually attending primary and secondary school instead of working, i.e. no child labor
• 40 hour work week
• Paid vacations
• Employer provided health care
• Safe work conditions
• And a whole host of others

are from unions, you know, organized labor.

 

If student athletes want to organize to strengthen their bargaining position, then more power to them.  They should have a say on if the NCAA wants to add more games to the season.  They should have a say in the safety of their sport.  They should have a say in the long term care of disabled athletes.  They should have the right to organize and strike to protest unfair conditions.

 

They are not slaves for your entertainment.

 

Maybe our military should unionize...

[charsibb]

So you are all OK with the NCAA exploiting the "student athletes"?  Coaches make millions, universities make millions, administrators make millions, everyone makes millions but the people actually playing the games.

 

Waaaaahhhh!! Mommy!!!!!!!!!!!  He got more than I did!!!!!!!!! (In a whiny, tantrum-y, crybaby voice)

So effing what?

Nobody is forcing these students to play sports at the point of a gun. They are getting a free education in exchange for their hard work on the field. It's their own responsibility to take advantage of that education, and if they don't, they are still better off than they were before they went to college. At least they have been exposed to the possibilities life offers to college grads, and hopefully they will graduate someday.

 

A lot of the student athletes are concerned with other things besides getting cash in their pockets.  What about student athletes who are injured and can no longer play?  The universities do not have to maintain their scholarship, and they could cut them from the team.  Therefore the player is left with no way to pay for their education, and a life long disability.  Who takes care of those student athletes now?  They gave up their bodies so coaches could make millions, universities could make millions, administrators could make millions, yet they are not even afforded the dignity of completing their education or compensated with healthcare to cover their life long injuries.

 

Do some schools take care of students in those situations?  Some do, but many find ways to worm out of paying for those responsibilites.  Just look at our friend to the east of USF, the good ole UCF.  They had a player die in practice, and the coaches, UCF, and even the State of Florida wormed their way out of compensating his family for the death of the player.  The State of Florida is the worst, since they pass a convenient law that caps money paid out in lawsuits.  It would be nice if private citizens had that type of protection from lawsuits.

 

Here at least, you have an argument, and a very good one. IMO, the schools need to provide long-term care for players injured while a student - regardless of whether they were a schollie student or not. If you exhort your students to "leave everything" on the field of battle, you have to take care of them when they actually DO leave a piece of themselves behind.

I have no issues whatsoever with the students organizing (and even striking) for this benefit.

 

...

 

They are not slaves for your entertainment.

 

What an ignorant hyperbolic comment. With comments like this, you exhibit a complete lack of understanding of what it means to be a slave.

 

[Brad]

 

They gave up their bodies so coaches could make millions, universities could make millions, administrators could make millions, yet they are not even afforded the dignity of completing their education or compensated with healthcare to cover their life long injuries.

 

 

 

Here at least, you have an argument, and a very good one. IMO, the schools need to provide long-term care for players injured while a student - regardless of whether they were a schollie student or not. If you exhort your students to "leave everything" on the field of battle, you have to take care of them when they actually DO leave a piece of themselves behind.

 

 

 

 

But that's not really even true, at all.  They don't give up their bodies so that a coach can make millions.  They give it up so that they can play (love of the game), get an education (if they want one), or mostly - a shot at the NFL.  The side benefits of chicks, gear, travel, etc.  don't hurt.

 

It's a selfish act/desire that lead men to play football.  We should stop blaming everyone else.

[charsibb]

 

 

They gave up their bodies so coaches could make millions, universities could make millions, administrators could make millions, yet they are not even afforded the dignity of completing their education or compensated with healthcare to cover their life long injuries.

 

 

 

Here at least, you have an argument, and a very good one. IMO, the schools need to provide long-term care for players injured while a student - regardless of whether they were a schollie student or not. If you exhort your students to "leave everything" on the field of battle, you have to take care of them when they actually DO leave a piece of themselves behind.

 

 

 

 

But that's not really even true, at all.  They don't give up their bodies so that a coach can make millions.  They give it up so that they can play (love of the game), get an education (if they want one), or mostly - a shot at the NFL.  The side benefits of chicks, gear, travel, etc.  don't hurt.

 

It's a selfish act/desire that lead men to play football.  We should stop blaming everyone else.

 

 

 

You are totally correct - it's an individual decision. IMO, it should still come with long-term health care if you get injured.

[smazza]

i say we relieve them of all academic requirements. Just have em play FB and they can worry about taxes tjemselves

 

 

agreed

[smazza]

 

So you are all OK with the NCAA exploiting the "student athletes"?  Coaches make millions, universities make millions, administrators make millions, everyone makes millions but the people actually playing the games.

 

Waaaaahhhh!! Mommy!!!!!!!!!!!  He got more than I did!!!!!!!!! (In a whiny, tantrum-y, crybaby voice)

So effing what?

Nobody is forcing these students to play sports at the point of a gun. They are getting a free education in exchange for their hard work on the field. It's their own responsibility to take advantage of that education, and if they don't, they are still better off than they were before they went to college. At least they have been exposed to the possibilities life offers to college grads, and hopefully they will graduate someday.

 

A lot of the student athletes are concerned with other things besides getting cash in their pockets.  What about student athletes who are injured and can no longer play?  The universities do not have to maintain their scholarship, and they could cut them from the team.  Therefore the player is left with no way to pay for their education, and a life long disability.  Who takes care of those student athletes now?  They gave up their bodies so coaches could make millions, universities could make millions, administrators could make millions, yet they are not even afforded the dignity of completing their education or compensated with healthcare to cover their life long injuries.

 

Do some schools take care of students in those situations?  Some do, but many find ways to worm out of paying for those responsibilites.  Just look at our friend to the east of USF, the good ole UCF.  They had a player die in practice, and the coaches, UCF, and even the State of Florida wormed their way out of compensating his family for the death of the player.  The State of Florida is the worst, since they pass a convenient law that caps money paid out in lawsuits.  It would be nice if private citizens had that type of protection from lawsuits.

 

Here at least, you have an argument, and a very good one. IMO, the schools need to provide long-term care for players injured while a student - regardless of whether they were a schollie student or not. If you exhort your students to "leave everything" on the field of battle, you have to take care of them when they actually DO leave a piece of themselves behind.

I have no issues whatsoever with the students organizing (and even striking) for this benefit.

 

...

 

They are not slaves for your entertainment.

 

What an ignorant hyperbolic comment. With comments like this, you exhibit a complete lack of understanding of what it means to be a slave.

 

 

 

being exploited to extent they are leaves little difference between them and old time slaves

 

i have been on the right side of this issue before this board was created so my understanding of slavery and exploitation is spot on 

[Apis Bull]

Being an NCAA scholarship athlete is in no way even close to slavery.