Terri Sewell (D-AL)
Protecting Student Athletes from Unexpected Tax Liability Act
A Democratic bill with 1 Democratic cosponsor · See the cosponsor
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is called the Protecting Student Athletes from Unexpected Tax Liability Act. It requires income tax withholding at the source for name, image, and likeness payments made to student athletes who are independent contractors. Under the bill, name, image, and likeness payments will be treated like wage payments with a withholding rate of 30 percent in cash or fair market value for non-cash remuneration. Student athletes can choose to opt-out of this withholding requirement. The bill also waives underpayment penalties for new student athletes for one taxable year and requires an IRS report on the effects of the withholding by December 31, 2029.
Yes· 3 of 4
- Scored +6
Would students be better off under this?
Student athletes gain financial predictability by avoiding large, unexpected year-end tax obligations.
- Scored +5
Does this make college cost less?
The bill helps students avoid unexpected tax liabilities and penalties through systematic withholding.
- Scored +4
Would people in their twenties and thirties be better off under this?
Young adult student-athletes benefit from reduced risk of unexpected tax bills through withholding.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Section 2(b) waives underpayment penalties for new student athletes. This is positive because it protects students from getting penalized by the tax system for underpayment in their first year.
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Section 2(a), through paragraph (6), allows a student athlete to elect to have the withholding rule not apply to them. This is positive because it gives individuals the personal choice to opt out of the automatic withholding if it does not fit their needs.
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Section 3 requires the Secretary to report to congressional committees on the costs, benefits, and accuracy of the 30 percent withholding rate by December 31, 2029. This is positive because it holds the government accountable for studying whether this tax rule is actually helping student athletes.
Potential Negative Impacts for People
- Section 2(a), through paragraph (2), sets a mandatory 30 percent withholding amount for cash and non-cash name, image, and likeness payments. This could be considered a negative burden because 30 percent might be much higher than what some student athletes actually owe, reducing their immediate take-home pay from these deals.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would students be better off under this? — Student athletes gain financial predictability by avoiding large, unexpected year-end tax obligations. Would people in their twenties and thirties be better off under this? — Young adult student-athletes benefit from reduced risk of unexpected tax bills through withholding.
- Education And Technology
- Does this make college cost less? — The bill helps students avoid unexpected tax liabilities and penalties through systematic withholding.
- Governance And Ideology
- Does this give the federal government more power? — The bill expands the federal government's tax collection authority over student-athlete income.
- 9/2/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Danny DavisDemocrat · Illinois