Last year in Tokyo, Kiyan Anthony saw his credit card decline as he tried to purchase an Alexander Wang sweater. His cousin Mekai made sure to remind him of this when he picked a mini bag to purchase the next day. But Kiyan had a quick response ready promising, “I told y’all, that NIL money is on the way. Coming soon y’all.” Kiyan, who owns his own six-figure clothing brand, has an NIL valuation of $1.1 million with some notable deals to his name. And sure, the NIL money did come his way, but so did the Taxman.

There has been a raging debate in college sports about whether the NIL money earned by student-athletes should be taxed or not. Earlier this month, a new bill proposed in the Georgia legislature aims to eliminate the state’s 5.49 percent income tax for college athletes on their NIL deals. But for now, athletes must report their NIL earnings on their tax returns, and this income is subject to federal income tax, as well as potentially state income tax. Hence, Kiyan’s father, Carmelo was keen on breaking this down this reality to his son.

Kiyan is currently committed to his father’s alma mater Syracuse and has seen a growth in his NIL valuation since September last year. But as he prepares for his college career, Carmelo is keen to teach his son about budgeting and managing his finances.

During an episode of the Boardroom podcast, the 10-time All-Star shared how quickly the times are changing for somebody as young as his 17-year-old son. “I got to talk to you about taxes at 17 years old. I got to talk about how you budget at 17 years old, at 17 years old I was running around we ain’t know nothing about no budget,” Melo shared.

Reflecting on his talk with his son he added, “I told him the other day, I said, you in my tax bracket now. You 17 in my tax bracket… you part of the 1%. So now I can’t hide that information from you. I got to tell you, you’re getting 60% of your money taken. Don’t ask me where it’s at. I ain’t got it. You know what I mean?”

NIL earnings are classified as ordinary income and are taxed based on the athlete’s income tax rate. Federal tax rates range from 10% to 37%, depending on total earnings. Additionally, NIL earnings may be subject to self-employment tax, which is approximately 15.3% and applies to net self-employment income. This tax is in addition to regular income tax, potentially resulting in a significant tax burden.

Then there is the state income tax, which varies according to the state. States like Florida and Tennessee, have no state income tax, while others, like California and New York, have higher tax rates. Hence, it is important for college athletes to budget, consult tax professionals, and plan accordingly.

That’s just part of the lessons Melo is now teaching his son to be financially responsible. “So that’s, those are the conversations that we have to have. They fun conversations because he’s on the right, he’s on the right path and he wanted to listen and he wanted to learn. But it takes the kid, it takes the individual to understand exactly what they want. But this ain’t overnight. This seed been planted for a long time.”

Given that Kiyan will be heading to Syracuse, he will be eligible to pay 4%–10.9% income tax on his NIL earnings to New York State. Going by his NIL valuation at present, he will have to fork out anywhere between 6.85% to 9.65% state tax on his NIL income.

Last year in April, Colorado Buffaloes’ Shedeur Sanders, one of the highest-ranked NIL earners talked about the reality of dealing with paying tax of their incomes at such a young age. Talking to The Dallas Morning, Shedeur shared a warning for the young athletes. “Understand taxes are real. You are going to have to pay taxes. You can have all the fun you want because you are going to have to get it out of your system, but know that taxes are not playing with you,” he said.

Thankfully for Kiyan, he has his father to advise him on how to budget and manage his finances while taking care of the taxes. With Carmelo Anthony having an estimated net worth of $170 million and his mom, La La Anthony, at $30 million, Kiyan has had the best examples to follow and learn from.

Meanwhile, Carmelo Anthony couldn’t be prouder of his son. Not only is the young hooper following in his father’s footsteps by joining Syracuse, but he’s also proving to be just as sharp off the court. “I’m proud of him that he took it upon himself to set a little business up for him and not wait for me or his mom to set it up. It’s like he’s doing it himself,” Melo said about his son’s ‘One Way,’ clothing brand in New York in 2023.

The brand is based out of Harlem and sells mostly T-shirts, hoodies, and joggers and mainly operate online. But how did Kiyan reach the same bracket as his father?

Kiyan Anthony’s NIL deals

As per On3, Kiyan’s first major deal came in September 2023, when he partnered with PSD Underwear, becoming the youngest basketball player to endorse the premium brand. He joined an elite lineup that includes Ja Morant, Trae Young, Jimmy Butler, Tyler Herro, and Bronny James.

But for Kiyan, it was never just about the paycheck. “It’s more than just a partnership,” he explained via On3. “It’s a collaboration that represents my style and my love of basketball. Together, we’re going to redefine what it means to be comfortable and confident both on and off the court.”

Even before the PSD deal, Kiyan was already building his own brand. His clothing line, One Way, isn’t just about fashion—it’s a lifestyle. On Overtime’s Evolution, he broke down his vision. “After the game, I linked up with my boy Jaden to go over the brand One Way. The end goal is to open up a whole store and everything, like we are trying to take it to the next level.” It’s amazing to see how kids these days use the NIL value to create a brand around them. It’s something really amazing.

Since then, the deals have kept rolling in. He signed with Nerf in September 2023 and followed it up with another partnership in October with the Mamba & Mambacita Sports Foundation, even modeling their gear. But Kiyan has his sights set higher. “I want an NIL deal with Jordan, cause my pops signed with Jordan. I feel like that will be fire,” he said.

Given his momentum, who’s betting against him?