Winning a gold medal brings a $9,000 tax bill

[Iwinyourmoney]

The United States Olympic Committee rewards Olympic medalists with honorariums. A gold medal brings $25,000. Silver medals get you $15,000. And a bronze is worth $10,000.
The Weekly Standard, a conservative news magazine, ran the numbers and tabulated that the tax bill on a gold is $8,986, silver is $5,385 and bronze is $3,500.

http://sports.yahoo.com/blogs/olympics-fourth-place-medal/winning-gold-medal-brings-9-000-tax-bill-171555961--oly.html

[Dad]

Taxing an athlete representing the U.S.

[Brock Landers]

income is income

[Chi_archie]

wait

so they get paid?

even a gold in skeet shooting? gets you 25k?

for some that are in a minor sport like kayak that have small endorsements and side jobs as instructors this might put them in higher tax brackets too.

otherwise a net of 16k gift for all that hard work is a nice sweetenner to the glory thing

[opie1988]

There is a bill being brought before Congress right now that will make Olympians winnings tax free.

It should be. They sacrifice a lot to do what they do.

[NunyaBidness]

There is a bill being brought before Congress right now that will make Olympians winnings tax free.

It should be. They sacrifice a lot to do what they do.

Yep, we should all have to chip in and pay for the lifestyle they chose.

[Chi_archie]

thats pretty cool

i'm glad its not just for the glory... even with the small time sports...

little extra incentive is nice.

the amount they invest must be huge

[Chi_archie]

Yep, we should all have to chip in and pay for the lifestyle they chose.

are you saying that the US olympic committee is solely government funded?

if so, I'd still be happier my $ going towards a hard working athlete with a dream like that swimmer in 100 free last night....then a ghetto welfare queen having 7 babies out of wedlock for the $ so she can give them to grandma so she can go to the club and party with nice hair and nails

[Dad]

thats pretty cool

i'm glad its not just for the glory... even with the small time sports...

little extra incentive is nice.

the amount they invest must be huge

Maybe these athletes should just turn it into a business then, and write off the amount they invest.

[dj_destroyer]

Canada offers 20k, 10k, 5k for Gold, Silver, and Bronze respectively. Tax rates would be about 45%.

[opie1988]

Yep, we should all have to chip in and pay for the lifestyle they chose.

No, I'd much rather support a bunch of animals on welfare using their EBT card to buy grape soda.

[Chi_archie]

are you saying that the US olympic committee is solely government funded?

if so, I'd still be happier my $ going towards a hard working athlete with a dream like that swimmer in 100 free last night....then a ghetto welfare queen having 7 babies out of wedlock for the $ so she can give them to grandma so she can go to the club and party with nice hair and nails

And buy 50 25 cent bags of chips

[NunyaBidness]

No, I'd much rather support a bunch of animals on welfare using their EBT card to buy grape soda.

What's the difference? Wealth transfers are idiotic no matter who to.

[paco]

No, I'd much rather support a bunch of animals on welfare using their EBT card to buy grape soda.

What u got against grape soda?

[bb_skoots]

If you make $25,000 you will be taxed. If some one makes $25,000 in the Olympics they won't be taxed. Sounds fair.

Oh, and you won't get a medal and fuk young women with free condoms in London.

[LVHerbie]

income is income

Again Mr. Landers is spot on in his economic analysis...

Why should the guy working at walmart be expected to pay taxes on his similar amount of income but athletics get a tax free pass? While I can see why the Opies of the world (who main support of Romney is based on their expectation of a windfall of wealth based handouts) might have a hard time understanding why us broke-dikked peasants aren't lining up to roll along with their visions of a society based on elitist nepotism I have a hard time understanding how his puppet politicians can even get away with even proposing legislation such as this while the 99% of us in the making peanuts tax brackets are still coerced into making regular payments to fund their governmental ponzi scheme and don't respond in full revolt...

[Chi_archie]

http://www.teamusa.org/Support-Team-USA/Ways-to-Give.aspx

Sbr john can we get an option to donate our points to make donations to this non profit?

[LVHerbie]

us olympic winners pay irs $236.00, at most, for every gold medal

although mediaite ran a column yesterday which claimed, in its headline, that “america’s olympic winners must pay irs nearly $9,000 for every gold medal,” and yahoo! Sports headlined a post “winning a gold medal brings a $9,000 tax bill” an analysis of the study on which that column is basedreveals that the amount us olympics champions must pay the irs for every gold medal is actually $236.00, assuming the athlete pays the highest tax rate. How can both of these things be true? Well, they actually can’t.

anyone reading the headlines ”america’s olympic winners must pay irs nearly $9,000 for every gold medal” or “winning a gold medal brings a $9,000 tax bill” would conclude that the athletes who win gold medals at the olympics are expected to fork over that $9,000.00 out of their pockets, as tax on the value of the medal, similar to the poor schmucks who have to sell the new car they won onthe price is right just to pay the tax on it. They would conclude that because that’s what those words mean, the athletes “must pay the irs $9,000.00 for every gold medal.”

such a thing would, of course, be an outrage, especially for athletes in more obscure sports who don’t make much in endorsements. However, this didn’t sound quite right, especially since i remember someone (probably matt lauer during the epic opening ceremony) droning on about how little gold there actually is in olympic gold medals.

as it turns out, though, us olympic medal winners don’t have to pay anything out of their pockets when they secure victory and glory for our country. That $9,000 ($8,986.00, actually) is mostly made up of the taxes that would be deducted from the prize money that accompanies the medal, not the medal itself. No olympic athletes will have to sell their medals to pay their tax bill.

as it turns out, the medals themselves carry very little in the way of taxable value. The $236.00 that grover norquist‘s americans for tax reform calculates for a gold medal is based on the top marginal rate of 35%, which would only apply to athletes whose total income exceeds $388,349.00.

the bulk of the taxes in atr’s report are for the prize money (as noted about halfway throughmediaite‘s wednesday article), not the medals, and are all calculated at the top marginal rate. Athletes making less than $388,350.00 would pay less. The prizes are $25,000 for gold, $15,000 for silver, and $10,000 for bronze.

now, if you think olympic prize money should be tax exempt, that’s a valid discussion to have, but acting as though we’re actually charging people for the privilege of winning gold medals for us is just dishonest. For what it’s worth, i admire olympic champions as much as anyone, but if we’re going to tax soldiers, police, firefighters, and any number of other heroic professions, then we should tax the athletes, too. A symbolic exemption for the medals themselves (hell, i could afford the tax on a bronze medal) would be acceptable, but of little value.

if you want to be outraged, why not consider the hundreds of millions of dollars that stand to be made by these olympics, versus the 10,500 athletes who will not be compensated at all, beyond those relatively tiny prize amounts? You’re going to pay $25,000 to the best person in the world at something, and you’re going to pay the 4th best person zero dollars? Let’s see if conservatives want to get behind spreading the millions being made on the olympics around to the athletes who make it all possible. Something tells me they’ll get a lot more “you didn’t build that”-ish in a big hurry.

http://www.mediaite.com/online/us-ol...ry-gold-medal/

[Chi_archie]

yeah i dont think anyone thought they were paying taxes on the value of the medal.

[LVHerbie]

yeah i dont think anyone thought they were paying taxes on the value of the medal.

I posted it because it showed how the headline was manipulative and because it explained (for people like Opie who feel bad for the top winners like Michael Phelps only getting to add 14k for each gold medal they win to their bounty of endorsement deals) that most of those who are competing receive nothing...

[Chi_archie]

LV, don't pay attention to the dumb commie/socialist libtards here.

I think most people here with brains knew it was a bonus prize money reward they got, and we are fine with them having the taxes deducted.

I do think some fail to realize that this is NOT a government funded program, its a non for profit

[LVHerbie]

LV, don't pay attention to the dumb commie/socialist libtards here.

I think most people here with brains knew it was a bonus prize money reward they got, and we are fine with them having the taxes deducted.

I do think some fail to realize that this is NOT a government funded program, its a non for profit

Archie you are probably right but yahoo exposing this travesty makes it so hard to ignore their fun article with wonderful quotes like these...

They note that Missy Franklin, an amateur who has yet to cash in on her fame with endorsements, already owes $14,000 in taxes from her gold and silver medal. By the time the Games are finished, Franklin's tax bill could reach $30,000.

How could not feel bad for poor Missy who is getting taxed on her $35k in winnings (and possibly more!) but has yet to cash her first endorsement check?

but you can't make an exception to athletes representing our country in the biggest event in the world? It's not unheard of: Military members are exempt from taxes when they're deployed in a combat zone.

Yes, while Missy didn't have to dodge bullets, her burden to the IRS is no less of a comparable injustice!

Florida senator Marco Rubio (R) reacted to the story on Wednesday, proposing a bill that would leave athletes exempt from the federal tax. ""Our tax code is a complicated and burdensome mess that too often punishes success, and the tax imposed on Olympic medal winners is a classic example of this madness

A politician Opie surely admires... Successful people paying taxes is punishing them so lets pass a law that only exempts them from the complicated and burdensome process the rest of us face

[Chi_archie]

very solid post Herbie.

I get where you are coming from now.

Herbs, bring back the fat motorcycle guy avatar!

[freeVICK]

lol phelps has like 20 medals? sure hes rich, but that sucks. thats a lot of weed he coulda bought

[Chi_archie]

No wonder phelp's mom doesn't want him to retire

[Chi_archie]

anyone have any idea how much phelps gets in endorsements?

[ChalkyDog]

Soooo, how does that whole first x amount of dollars earned overseas are tax free?

[ChalkyDog]

anyone have any idea how much phelps gets in endorsements?

Phelps will have a million dollar yearly income for the rest of his life. Dude is set.

[MUHerd37]

Not many people talking about how much it costs to train these athletes. It costs a ton and most is picked up by their parents if they are young. That black gymnastics girl is from a single mother who had to declare bankruptcy this year. Let the athletes keep their money. They are out there representing the U.S. You can tax people like Phelps, and the NBA players. They make a shit ton so it doesn't matter to them. It means a lot to many of the athletes tho. The athletes you hear nothing about. An athlete shouldn't have to sell their medal to pay the taxes on the medal.

[InTheDrink]

An athlete shouldn't have to sell their medal to pay the taxes on the medal.

someone isnt paying attention

[Nittany Lion]

Any Singaporean that wins gold gets $800,000 US......cha-ching!

http://in.reuters.com/article/2012/07/30/oly-goldvalue-day-idINL6E8IT1Q320120730

"In the near term, athletes with the golden touch can expect a handout from their country as many of the 204 National Olympic Committees have financial incentive schemes for gold winners.
Singaporean athletes are being offered one of the biggest incentives with an offer of 1 million Singapore dollars ($800,000) for a gold. Singapore has never won gold at the Olympics.
STAMP AND GLORY
The United States will pay 15,000 pounds ($25,000) to gold medallists while Australians will receive A$20,000 ($20,900), feature on an Australia stamp and get a flight upgrade home.
Russia, battling Britain to keep its third place in the gold medal table, has promised athletes 85,000 pounds ($135,000) for golds while there are reports Italy has offered 116,000 pounds ($182,000).
China, which is jostling with the United States for top of the gold medals tally, has not released details of financial incentives but the Chinese language Sports Weekly reported they were likely to hand gold winners $51,000.
India has promised coaching jobs to athletes who win medals.
British athletes, however, will have to settle for national glory and their image on a stamp rather than cash."

[EmpireMaker]

Our government gives more daily to towelheads in Pakistan than it would than it would cost this country to make all of these awards tax-free

[Marigold HD]

The NBA players piss on the Olympic tax bill.

That was an interesting read on the rewards countries give to winning athletes. Wow Singapore.

[SBR_John]

What about those team games like water polo? I guess everyone on the team gets 25 large?

It shouldnt be taxed at all. Or at least the first 13k should be tax free under the gift tax.

[Chi_archie]

yeah I would think all members of a team sport get the award too