Skip to comments.Winning a gold medal brings a $9,000 tax bill
Posted on 08/02/2012 2:35:06 AM PDT by chemicalman
When Olympic medalists return to the United States, they're in high demand. Everyone, from Michael Phelps to a bronze medalist in judo will be sitting for television interviews, talking to newspapers, going to assemblies at local schools and celebrating with friends, family and young athletes. They'll also draw some unwanted interest from everyone's favorite bureaucrats: the IRS.
Medalists will have to pay hefty taxes for standing on the podium in London. It's not the value of the medal itself that will require a separate line on this years tax returns, it's the tax on the prize money that comes with a gold, silver or bronze.
(Excerpt) Read more at sports.yahoo.com ...
they didn’t win that, someone else made that possible
I know that my Senator, Marco Rubio, is crafting a bill to exempt Olympic Medals and their cash awards from taxation. I have to say that I disagree with his good intentions and propose the following in its place.
Since this meets the definition of earned income, the cash awards should be adjusted of expenses over the past 4 years [Olympiad] that have not already been used by the taxpayer athlete or family (if awardee is a dependent). Second the tax bracket should be the lowest current tax bracket in effect at the time of the cash award. Finally, the medal itself shall remain untaxed on its intrinsic value.
Yes, I am a tax preparation professional, does it show? I suggest this because I feel that there are far too many special provisions and exemptions in the current tax code. So I make this humble suggestion to reward the Olympic Winners while not increasing the tax code exemptions (much)! This keeps the awardees as tax participants rather than becoming part of the 49% tax avoiders.
My opinion on the current tax code is that it does need to be simplified ASAP. I am in favor of the “Fair Tax” or some other consumption-based tax operation but I do not expect it because too many special interests are tied to the current tax code.
Income is subject to income tax. We may not like it, but...
In short, this article is a hoax, a lie, a non-issue.
Thats the main reason why I never applied for the Olympics, the tax penalties were too oppressive.
They’re advertising and promoting “Team USA” for free.
I`ll bet no other country screws over its Olympic champs like that. What a ____ed country this is anymore... can it get any more absurd???
Next thing u know Bam will be demanding 20% of the medals value, add that to to value and the olympian will be able to keep 30%. After all it’s the people’s medal.
To bad that bill has to start in the house....
We all pay taxes. Your senator needs to work on lowering EVERYONES taxes.
Is this a new thing or has prevoius Olympic athletes been taxed like this?
pretty sure it’s been around for a long time.
I wasn’t even aware athletes got money for winning a medal, I know the ship sailed a long time ago, but supposedly Olympic athletes were supposed to be amateurs.