NFL bonuses are taxed just like any other form of income. The amount of tax that a player will owe on their bonus will depend on their tax bracket and the amount of the bonus.

In general, NFL bonuses are considered supplemental wages, which means they’re paid in addition to an employee’s regular wages. These types of payments are taxed at a flat rate of 22% unless the employee elects to have the bonus taxed at a higher rate. This option is available to employees who expect to be in a higher tax bracket in the future, such as those who expect to receive a large bonus in the next tax year.

There are a few different types of bonuses that NFL players may receive, each of which is taxed differently:

1. Signing Bonus

Signing bonuses are a common feature of NFL contracts and are paid to players when they first sign a contract with a team. These bonuses are typically paid in a lump sum and are intended to help players offset the cost of moving to a new team and getting settled in their new location.

The amount of a signing bonus can vary widely depending on the player’s position, experience, and negotiating skills. Some players may receive a signing bonus of several hundred thousand dollars, while others may receive a bonus of several million dollars.

2. Roster Bonuses

Roster bonuses are a type of bonus that is paid to NFL players for being on an NFL team’s active roster on a certain date. These bonuses are typically paid in a lump sum and are based on the player’s position on the team and their level of experience.

The amount of a roster bonus can vary widely depending on the player’s position, experience, and the terms of their contract. Some players may receive a roster bonus of several thousand dollars, while others may receive a bonus of several hundred thousand dollars.

Roster bonuses are taxed just like any other form of income. The amount of tax that a player will owe on their roster bonus will depend on their tax bracket and the amount of the bonus.

3. Performance Bonuses

Performance bonuses are a type of bonus that is paid to NFL players based on their performance on the field. These bonuses are typically paid in a lump sum and are based on a variety of factors, such as the player’s statistics, their team’s performance, and their individual achievements.

4. Restructuring Bonuses

Performance bonuses are a type of bonus that is paid to NFL players based on their performance on the field. These bonuses are typically paid in a lump sum and are based on a variety of factors, such as the player’s statistics, their team’s performance, and their individual achievements.

It’s important for NFL players to carefully track their income and keep accurate records of their performance bonuses and other forms of income. This can help them to accurately report their income on their tax return and ensure that they pay the correct amount of tax. Players may want to consider working with a financial advisor or tax professional to help them manage their income and ensure that they’re paying the correct amount of tax.

In addition to these types of bonuses, NFL players may also receive other types of income, such as endorsements, which are taxed at the player’s regular tax rate.