Law Watch

We watch the law so every plan you send is current.

Federal, state, and NCAA rules that touch NIL and revenue-share income change constantly. Our monitoring agents track the primary sources; nothing reaches a client plan until a human reviews and approves it. This is that public record.

Current as of Jun 12, 2026
Critical Action may be neededUpdate Informational
  1. Jun 12, 2026
    Live in plans
    UpdateFederal

    Social Security wage base rises to $184,500 for 2026

    Up from $176,100. Raises the FICA ceiling on S-Corp salaries above the base, so the reasonable-comp salary on high earners now carries slightly more payroll tax — the S-Corp savings math is recomputed automatically.

    Who it's affected: High-salary athletes (reasonable-comp salary above the wage base)Source: SSA 2026 COLA fact sheet
  2. May 28, 2026
    Held for review — not yet applied
    CriticalNCAA · Revenue share

    Employment-status challenge advances in appellate court

    A ruling could reclassify revenue-share pay as W-2 wages — which cannot be routed through an S-Corp and would not qualify for QBI. If it lands, the core strategy for revenue-share athletes changes overnight. Held for legal review; no change applied yet, but every affected plan is flagged.

    Who it's affected: Every athlete taking school revenue shareSource: Johnson v. NCAA docket · counsel review
  3. Apr 30, 2026
    Held for review — not yet applied
    CriticalNCAA · House settlement

    House settlement payments: 1099 treatment reaffirmed for the 2025–26 cap year — but contested

    Schools are reporting first-year revenue-share distributions on Form 1099, keeping the S-Corp and QBI strategy live for active-service classification. Two practitioner groups have asked Treasury for a W-2 ruling. We model 1099 today and will switch plans the moment guidance changes.

    Who it's affected: Athletes receiving direct school revenue-share paymentsSource: IRS practitioner liaison · NIL collective counsel
  4. Feb 4, 2026
    Live in plans
    UpdateFederal

    1099 reporting threshold rises from $600 to $2,000

    Fewer small NIL deals trigger a 1099 in 2026. This changes reporting, not tax owed — income is still taxable below the threshold. Affects which third-party deals generate paperwork.

    Who it's affected: Athletes with many small third-party NIL dealsSource: IRS — 2026 information-reporting update
  5. Jan 15, 2026
    Live in plans
    UpdateState

    North Carolina flat rate drops to 3.99% for 2026

    Down from 4.25%. Lowers state tax for all NC-resident athletes and slightly shifts the multi-state allocation math for road games played outside NC.

    Who it's affected: North Carolina residentsSource: NC Department of Revenue
  6. Dec 9, 2025
    Live in plans
    UpdateState · PTET

    California extends its Pass-Through Entity Tax election through 2026

    California's PTET — which lets an S-Corp deduct state tax federally and sidestep the SALT cap — remains available for the 2026 tax year. For high-earning CA-resident athletes electing S-Corp, this is one of the largest single federal deductions in the plan.

    Who it's affected: California-resident athletes electing S-CorpSource: CA FTB · AB-150 extension
  7. Nov 20, 2025
    Live in plans
    UpdateFederal · Retirement

    2026 Solo 401(k) limits increase: $24,500 deferral, $72,000 total additions

    The elective-deferral limit rises to $24,500 and the §415(c) annual-additions cap to $72,000 for 2026. More room to defer earnings tax-free under either entity — the optimizer now sizes employer profit-sharing to the new ceiling.

    Who it's affected: Every athlete funding a Solo 401(k)Source: IRS Notice — 2026 retirement plan limits
  8. Oct 2, 2025
    Live in plans
    UpdateFederal · Audit

    IRS signals heightened scrutiny of §280A(g) 'Augusta Rule' deductions

    Examiners are challenging home-rental deductions taken without written agreements or fair-market comps. The deduction is still valid — but the guardrails now require documentation and a defensible daily rate before the plan recommends it.

    Who it's affected: S-Corp athletes using the Augusta RuleSource: IRS examination guidance · practitioner alert
Get Law Watch alerts by email
When an approved federal, state, or NCAA change affects NIL or revenue-share income, we'll email you what changed and who it touches. No spam — just the rulings that move plans.
Want these updates flowing into your clients' plans automatically?
Every SidelineWealth plan recomputes the moment an approved change goes live — and flags exactly which of your athletes it touches.
See it in the planner →