If you've never heard of "quarterly estimated taxes," you're not behind — most people with normal jobs never deal with them. But the moment you start earning NIL money, you join the self-employed world, and this becomes part of your game. Here's the plain-English version.
Why this exists at all
At a normal job, your employer takes taxes out of every paycheck and sends them to the government for you, all year long. The IRS gets paid steadily, and you never think about it.
With NIL money, there's no employer doing that. The full check lands in your account, untaxed. The IRS doesn't like waiting a whole year to get paid, so the rule for self-employed people is: pay as you go, four times a year. That's all "quarterly estimated taxes" means — you're playing the role your employer used to play.
The four dates to know
The deadlines fall at roughly the same time each year. Put these in your phone calendar now:
| Payment | Roughly due | Covers income from |
|---|---|---|
| Q1 | Mid-April | Jan–Mar |
| Q2 | Mid-June | Apr–May |
| Q3 | Mid-September | Jun–Aug |
| Q4 | Mid-January (next year) | Sep–Dec |
The exact dates shift slightly year to year (weekends and holidays), so confirm them each year — but April, June, September, and January is the rhythm to remember.
How this connects to your 30% habit
This is why the 30% set-aside habit matters so much. If you've been moving about 30% of every NIL payment into a separate "Taxes" account, you already have the money ready. When a quarterly deadline comes, you simply send the IRS a payment out of that account. No scramble, no panic.
The athletes who get hurt aren't the ones who owe taxes — everyone owes taxes. It's the ones who spent the tax money and have nothing set aside when the deadline hits.
A simple example
Say you earn about $4,000 in NIL deals over the spring. You've been setting aside 30%, so you've got roughly $1,200 sitting in your tax account. When the mid-June quarterly deadline arrives, you send the IRS an estimated payment from that money. You repeat the process each quarter as more deals come in. At year-end, your tax return reconciles everything — and because you paid along the way, there's no giant surprise bill.
What if you skip them?
This is where a CPA earns their fee
Quarterly taxes are exactly the kind of thing worth handing to a pro. A CPA (a tax accountant) can tell you how much to send each quarter, set you up to pay online, and make sure you don't overpay or underpay. For an athlete with real NIL income, one session can save you far more than it costs — and it removes the stress of guessing.
You don't need a full-time money manager for this. You need one good tax pro and a tax account you actually funded. That's the whole setup.
What to do right now
- Make sure you have a separate "Taxes" account and you're moving ~30% of every payment into it.
- Put the four quarterly dates (April, June, September, January) in your calendar with reminders.
- Talk to a CPA before your first deadline to confirm your numbers and how to pay.
New to NIL taxes? Start with do college athletes pay taxes on NIL?, then the complete guide to NIL money.
Frequently asked questions
What are NIL quarterly estimated taxes?
Because no employer withholds tax from NIL income, the IRS generally expects you to pay your taxes in installments about four times a year — roughly April, June, September, and January — instead of all at once in April.
Do I have to pay quarterly taxes on NIL income?
If you expect to owe a meaningful amount of tax on NIL income, you generally do. Paying quarterly keeps you on the right side of the IRS and avoids underpayment penalties. A CPA can confirm whether and how much you owe each quarter.
What happens if I skip NIL quarterly taxes?
You can owe an underpayment penalty plus interest on top of the tax itself — even if you pay everything by April. The simple fix is to set aside about 30% of every payment and send the IRS a slice each quarter.
This article is educational and is not personalized financial, tax, or legal advice. Tax figures, deadlines, and rules change and vary by person and state — confirm current details with a licensed professional. Investing involves risk, including possible loss of principal.