Skip to comments.Go for the Gold! (Pay the IRS.) [16 y/o Gold medalist owes taxes for medal]
Posted on 08/01/2012 2:30:10 PM PDT by NYer
Because conservatives are scrooges, the good folks at Americans for Tax Reform have gone through the fine print to find out what our Olympians will have to cough up to the IRS should they be lucky enough to win any medals in London.
Even by the standards of our government, the numbers are insane.
For instance: Americans who win bronze will pay a $2 tax on the medal itself. But the bronze comes with a modest prize$10,000 as an honorarium for devoting your entire life to being the third best athlete on the planet in your chosen discipline. And the IRS will take $3,500 of that, thank you very much.
There are also prizes that accompany each medal: $25,000 for gold, $15,000 for silver, and $10,000 for bronze.
Silver medalists will owe $5,385. You win a gold? Timothy Geithner will be standing there with his hand out for $8,986.
So as of this writing, swimmer Missy Franklinwho's a high school studentis already on the hook for almost $14,000. By the time she's done in the pool, her tab could be much higher. (That is, unless she has to decline the prize money to placate the NCAAthe only organization in America whose nuttiness rivals the IRS.)
ATR notes that the real twist of the knife is that most other Olympians won't pay any taxes on their medals because America is one of only a handful of countries which taxes "worldwide" prize income earned overseas.
They did not earn that. Somebody else made that happen. Did they drive on public roads? Gimme!
No wonder Michael Phelps wasn’t as prepared as he should have been, he didn’t want to win too many golds.
If it were me, I would give the irs the medal and claim whatever value they set on it against future taxes. Let them put it in the bank and write checks on it.
The rest of us paid for those pools these athletes trained and competed in. We were responsible for filling up the pools with water. Regularly, we tested the water, added little chlorine tablets... the swimmers didn't do it. We did!
Is MooseChelle still over there?
Where is she when white people do good?
But that dampens a perfectly good rant.
(Though they shouldn't even have to declare it as income.)
This is such a lie. It is popularly going around. The ‘money’ one gets for the so called win goes straight to the USOC aqnd does not go to the winner. This kind of delusional crap has got to stop
Michelle showed up in a $7,000 jacket to meet with Kate. Obama Donates to Himself (Rush Limbaugh weighs in)
Will he be entering that in his Turbo Tax?
“It wouldn’t kill us to have Olympics medal income exempted from income tax, or at least offset by training expenses bourne by the athlete or family.”
Republicans should announce the “Olympic Medal Exemption Law” which exempts olympic medal winners from taxes.
Let Harry Reid kill it in committee.
It was most likely a democrat who thought of taxing Olympic medals. I’m curious, how did they conclude that competing in the Olympics was a source of income and a medal qualifies as income? It probably happened under Clinton since he also signed the double taxation of income for social security. In their own little corrupt world a democrat can skew anything.p>
or at least offset by training expenses bourne by the athlete or family.
It is expensive. My 9 year old granddaughter is only a level 5, her two outfits this year cost $450 one for practice and one for competition. Her training is now running around $400 a month. Next year when she moves up to a higher level the cost will go up.
They probably swam in public pools.
Girl begins to cry.
You got the Silver and the right mind set if I may be so bold.
*chuckle* I want a rematch in 2016.
Look at her mouth-doesn’t it look like she has a couple of small FANGS???
They think they’re good athletes? Well, there’s a lot of people in this country who think they’re good athletes. What about the roads and bridges? If you’re a good athlete - you didn’t build that.
My daughter is a competitive swimmer who has her eye on the 2016 Olympics. (As do all 15 year old competitive swimmers I suppose)
Let’s assume she reaches her goal and wins a medal and has to pay taxes on that medal.
Seems logical that I should be able to deduct all of the various annual costs.
Membership fees for a USA Swim Club: $3500
“Splash Fees” $500
Hotels for away meets: $4000
Travel for away meets: $1400
Training suits: $300
Race suits at $350 each: $1400
Private Coaching $2000
(All prices are estimates as I don’t want to get up and pull out our records.
Cool. $13,100 tax deduction.
With a standard deduction of $5,800 and an exemption of $3,700, the first $9,500 of income is tax-free. The next $8,000 of income is only taxed at 10%, and then the rate only increases to 15% all the way to $34,000.
And if the award money is taxable income, the Olympian can file a Schedule-C and deduct related expenses such as travel, training expenses, etc. By then there's no tax to pay.
How I despise sensational fake lying news articles!
Are you trying to spoil a good rant?
With all due respect, the fact that you had to explain this tax situation at all clearly demonstrates the problem. Taxes are needed to pay for government. The only reason it needs to be complicated is for obfuscation.
Schedule C? Why would there need to be anything then a bill sent to you for your portion of the cost of running government? I agree, the author is clearly trying to gin up controversy to attract attention. The fact that they are able to is a demonstration of the problem.
Not trying to contradict you. Just marveling that we have to spend this much thought on taxes at all. If we have to have big brains working on complicated taxes, we won’t have big brains working on solving big brain problems that aren’t of our own convolutions.
I pray your daughter makes it and is safe, I just heard that a cyclist was hit my a media van at the Olympics and was killed.