General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsI cannot believe that Olympic athletes have to pay taxes
on each medal.
Gold - $8,986
Silver - $5,385
Bronze is $3,500
WTF???
MADem
(135,425 posts)They might want to take tips from Ann Romney.
Cali_Democrat
(30,439 posts)Why is this all of a sudden an issue?
rocktivity
(44,576 posts)Last edited Sat Sep 6, 2014, 09:02 PM - Edit history (5)
The value of prizes you win (the ones you compete for as well the ones you win in a drawing), has always been taxable. And what with the deductions athletes can take (clothing, travel, research, equipment, gym membership fees, etc.), they come out WAY ahead!
rocktivity
Lydia Leftcoast
(48,217 posts)Look at your state lottery's website. They specifically say that they deduct taxes before giving you your check.
rocktivity
(44,576 posts)Last edited Fri Aug 3, 2012, 09:12 AM - Edit history (1)
as the winners of Oprah's "You're Getting A Car!" episode found out.
rocktivity
riverbendviewgal
(4,252 posts)sadbear
(4,340 posts)This is another false right-wing outrage. They pay taxes on the cash prizes they get for winning medals. They don't pay taxes on the medals themselves.
sinkingfeeling
(51,457 posts)sharp_stick
(14,400 posts)about 388k a year and have no deductions. Other than Michael Phelps, and the pros, I don't see a lot of them needing to worry about the IRS coming after them.
kestrel91316
(51,666 posts)Sgent
(5,857 posts)5-15K
Now... there costs in competing is deductible from that amount... or they can take the same "out" that nobel prize winners do and donate the money (directly, never take possession) to a non-profit.
Angry Dragon
(36,693 posts)They also get $25,000
Retrograde
(10,136 posts)but they can deduct expenses incurred to get those medals - training, transportation, equipment, etc., which probably run a lot more than $9000
Maeve
(42,282 posts)rfranklin
(13,200 posts)An athlete who wins a medal bonus would be free to deduct any unreimbursed expenses from the bonus, lowering -- or maybe even eliminating -- their tax hit. In fact, accountants say an athlete would be crazy not to.
"Anything used for the production of income is deductible," said Brad Bell, a partner with BGBC Partners LLP in Indianapolis who specializes in accounting for athletes.
Greg Shafer, an accountant in Colorado Springs, Colo., added that "if they were my client and had to pay that kind of tax, I would say, Well, what are your ordinary and necessary expenses? That could be travel, uniforms, cell phone use." The U.S. Olympic Committee is based in Colorado Springs, and Shafer said he has provided accounting services to athletes.
So expenses for gymnasts might include tumbling classes, payments to coaches and travel costs to international meets. Cyclists would pay for new bikes and maintenance. An Olympian fencer told Forbes.com that her expenses for equipment and competitions run around $20,000 per year.
http://www.politifact.com/truth-o-meter/statements/2012/aug/01/americans-tax-reform/do-olympic-medalists-owe-9000-irs/
Tom Ripley
(4,945 posts)to the common good have to pay taxes
DevonRex
(22,541 posts)russspeakeasy
(6,539 posts)It's just more repub bullshit. (or did Obama just invent this tax yesterday)..
B2G
(9,766 posts)I fully realize Obama didn't invent this tax and I didn't realize they received cash rewards.
Mkay?
Kalidurga
(14,177 posts)If a RWer is outraged sniff around for smoke and have a fire extinguisher handy. I have to my embarrassment believed things they say. In too many cases I have found out later it was either a lie or they twisted facts so much it might as well have been a lie. In this case I am going to say it might as well be a lie, because the IRS has never made someone pay taxes on their medals. It would be as someone said a PR nightmare.
ipfilter
(1,287 posts)rocktivity
(44,576 posts)which is defined as "a payment given to a professional person for services for which fees are not legally or traditionally required." Gold medalists get $25K, silver $15K, bronze $10K. But you're always expected to pay taxes on the value of prizes you win (either through competition or the luck of the draw).
rocktivity
Chorophyll
(5,179 posts)Except that would be all of US, and we don't have awesome jobs like swimming and gymnastics. Also, we probably won't be getting all kinds of free stuff or product endorsements.
I hope I don't sound insensitive or anything.
JI7
(89,249 posts)if we win a prize worth a certain amount we have to do the same. if some poor person won a car they would have to pay tax on it also.
WolverineDG
(22,298 posts)Just like anyone who wins the lottery, the publisher's clearinghouse sweepstakes, & The Price is Right. This is the new RW meme, btw.
Posteritatis
(18,807 posts)I can't see how a gold medal that's less than one percent gold can have that kind of value. They're not debased as much as homeopathic by now.
pinboy3niner
(53,339 posts)Tax brackets and deductions of Olympic athletes mean that most won't owe any taxes on their honoraria.
Dyedinthewoolliberal
(15,574 posts)'cause this isn't exactly true.......
http://www.snopes.com/politics/taxes/olympics.asp
GoCubsGo
(32,083 posts)This is news to me. That being said, income is income. And, if they're paying THAT much in taxes, they need to find an new accountant, or get better tax software.
WolverineDG
(22,298 posts)fascisthunter
(29,381 posts)...we can't harm the sensitive bubble they live in.
Turbineguy
(37,329 posts)to the rescue!
alcibiades_mystery
(36,437 posts)Gimme a break with this fake issue.
Are you really this easily manipulated?