General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAn NFL player performed a great charitable act:
Oakland Raiders just earned our All-Pro honors -- for incredible generosity.
The Raiders were visited recently by Ava Urrea, a 4-year-old who was born with hypoplastic left heart syndrome -- which interrupts normal blood flow through the heart. Ava, who has had 14 surgeries, got to hang with the players last week, received a signed helmet and all kinds of goodies and attended the team's game on Dec. 21. It was all arranged through the Touchdown Dreams children's charity run by Fox Sports reporter Jay Glazer.
But Watson went the extra yard -- well, way beyond that. He pulled Ava's father aside and told him he was donating a week's paycheck to the family.
Just how much money is that? Well, given Watson's $622,948 salary for this season, his weekly paycheck for the 17-week season comes out to almost $37,000 before taxes, according to Pro Football Talk. "With federal and California taxes consuming roughly half of that amount, the net check would have been in the range of $18,000," the outlet went on to note.
<snip>
http://www.huffingtonpost.com/2014/12/22/menelik-watson-heart-week-paycheck-donation_n_6366368.html
These players earn a lot of money. However, Watson is one who is on the very low end of the scale. His donation is a great deal more of what he gets than many who donate a lot more. There are many who quietly do good work.
Kudos to him!
Happy Holidays Menelik and Ava!
Journeyman
(15,031 posts)Menelik Watson's gift is especially meaningful, and will no doubt go a long ways towards helping this family.
The world would be a much better place if we could all find a means to help as we can afford.
Unknown Beatle
(2,672 posts)to humanity, but I don't see why the family in need can't keep all of the money. Half is way too much going for taxes. Why don't CA and the feds make an exemption.
Are_grits_groceries
(17,111 posts)That's where the huge tax bite is.
If he played in Florida or Texas no state taxes.
Angleae
(4,482 posts)The IRS taxes such one time items such as gifts & bonuses at the maximum bracket unless you've set it up to have a smaller deduction taken with them.
Princess Turandot
(4,787 posts)The gift is usually not considered income to the recipient. The 'giver' pays a gift tax if one is owed, not the recipient. The first $14k of any individual gift in any one year isn't taxable to giver. In this case, that would leave $23k as a taxable amount for the giver. But there is a lifetime federal exclusion on the gift tax of ~ $5.4 million. The $23k would first be applied against that amount, before any federal taxes are due, so unless this admirable young man has already given more than $5.4 million cumulatively in gifts, he probably won't owe any federal taxes. (Gifts above the $5.4 million exclusion are currently taxed at 40%.)
I don't think CA has a gift tax. My guess is that whoever came up with the tax number thinks that the gift is income to the recipient in this case.
BTW the reason for taxing gifts given while the giver is still breathing is to prevent an 'end run' of the estate tax. But with the large exclusion, it affects very few people.
Are_grits_groceries
(17,111 posts)Watson will pay the taxes when they are filed. If there is no gift tax, the recipient will pay little if anything. Just because he got a hard copy game check, that doesn't mean the income tax burden is transferred too.
Thanks to all.