Congratulations on becoming the first wave of collegiate student-athletes to successfully navigate the NIL world! To put a bow on the the year Name, Image and Likeness (NIL) rule change, there is one last item to prepare for – taxes. You’ve heard about this from Opendorse and your athletic staff since July 1, but now it’s time to get down to business. April 18, Tax Day, is coming.
Disclosure Summary Report
To assist with your tax preparation, Opendorse has released a downloadable Disclosure Summary report. This report can be found on your disclosure dashboard in both the mobile and web application and lists all your completed disclosures and the associated value of each. Just navigate to your Disclosures page and click the ‘2021 Disclosure Summary’ button.
The 2021 Disclosure Summary includes disclosures submitted through Opendorse prior to January 1, 2022 or disclosures with an activity date that completed during 2021. This document will download as a PDF that may be saved or shared with a tax professional.
Important: The value of cash or in-kind disclosure listed on this summary represents the monetary value reportedly received for NIL activities disclosed via Opendorse in 2021. If you failed to disclose activities via Opendorse, this value will not reflect those activities. If the value represented for a particular NIL activity does not match the value in the disclosure report, contact your institution’s compliance team to assure accurate record keeping of NIL activities for your 2021 tax reporting purposes. This value is for tracking purposes only and should not be used as reporting for tax purposes. Additionally, this value may not match the value reported on your Opendorse 1099 if you have disclosed deals through Opendorse that were not pursued or paid out on the Opendorse platform.
Tax Frequently Asked Questions
Tax season can be a confusing time, which is why we recommend you seek the advice of a registered professional or trusted representative that can help with your individual needs. Opendorse is not a legal or financial advisor and these answers should be used for general guidance only.
What is a W9 form?
A W-9 form is used to provide your correct Taxpayer Identification Number (TIN) to a person or business who is required to file an information return with the IRS to report.
Do I need to fill out a W9 form through Opendorse?
A W9 form is required if you receive earnings that total $600 or more, including cash and in-kind payments, in the previous calendar year (January 1 through December 31). A W9 is for a company to provide you with a 1099 at the end of each calendar year. A W9 you filled out with Opendorse is only for the activities done through the Opendorse Marketplace. If you do activities that did not go through Opendorse, you will also need a W9 for each of those activities.
Do I need to resubmit my W9 form if I have created a business or LLC, or changed addresses?
Yes. You will need to update your W9 form submitted to Opendorse if your filing status has changed (i.e., you have created an LLC, if you have married, or changed your legal name, or if you have changed addresses since you completed your W9). Please reach out to Opendorse Support via the support chat or email to have them reset your W9 form.
What is a 1099 form?
A 1099 form is used to report rents, royalties, prizes and awards, and other fixed determinable income. A 1099 form is required to be provided to any person who receives $600 or more through the aforementioned avenues by the compensating party.
Why do I need a 1099 form?
A 1099 form is needed when filing taxes.
Will I receive a 1099 form through Opendorse?
You will only receive a 1099 form through Opendorse if you receive earnings that total $600 or more through the Opendorse platform – including cash and in-kind payments – in the previous calendar year (January 1 through December 31). The 1099 received from Opendorse will only show the income made through the Opendorse marketplace, any activities you did outside of Opendorse will not be reflected in your Opendorse 1099.
Will I receive a 1099 form from each company that I have done a deal with through Opendorse?
No. You will only receive one 1099 form from Opendorse for the deals with earnings that total $600 or more through Opendorse – including cash and in-kind payments – in the previous calendar year (January 1 through December 31). You will continue to receive a 1099 form for each calendar year in which you earn $600 or more through the Opendorse platform.
Will a 1099 form provided by Opendorse contain information of any deals completed outside of Opendorse?
No. The 1099 form provided by Opendorse will only display earnings that total $600 or more received through Opendorse – including cash and in-kind payments – from the previous calendar year (January 1 through December 31). If you have received $600 or more for deals completed outside of the Opendorse platform, the compensating party is required to provide you with a separate 1099 form.
How will I receive my 1099 form from Opendorse?
According to the deadline set by the IRS, a 1099 form from Opendorse will be mailed to the address provided in the W9 and will be postmarked no later than January 31. Please consider all the addresses you may have provided if you are not sure (e.g. home, school, etc.).
Can I access my 1099 form digitally?
Unfortunately, not at this time.
Will I receive a 1099 form from Opendorse for funds in my account balance if I have not transferred those funds to my bank account?
Yes. You will receive a 1099 form from Opendorse for all earnings through the Opendorse platform– including cash and in-kind payments – from the previous calendar year (January 1 through December 31) if the total value earned is $600 or more regardless of if the funds have been transferred to your bank account or not.
DISCLAIMER: Opendorse is not a legal or financial advisor. These answers are only for general guidelines and should not be regarded as tax advice. For any questions regarding the reporting of taxes, or filing of such, please seek out advice from a registered advisor or other trusted representative.