Win Olympic Gold, Pay the IRS U.S. Olympic medal winners will owe up to $9,000 to the IRS

ATR ^ | 08/01/2012 | Hugh Johnson

[SeekAndFind]

WASHINGTON, D.C. — While 529 hardworking athletes proudly represent the United States in the 2012 Olympics, any medals and money they earn wearing red, white and blue will be taxed by the IRS. According to research done by the Americans for Tax Reform Foundation, U.S. Olympic athletes are liable to pay income tax on medals earned and prizes received at the London games.

American medalists face a top income tax rate of 35 percent. Under U.S. tax law, they must add the value of their Olympic medals and prizes to their taxable income. It is therefore easy to calculate the tax bite on Olympic glory.

At today’s commodity prices, the value of a gold medal is about $675.  A silver medal is worth about $385 while a bronze medal is worth under $5.

There are also prizes that accompany each medal:  $25,000 for gold, $15,000 for silver, and $10,000 for bronze.

So how much will U.S. Olympic medal winners have to pay in taxes to the IRS?

			Medal Tax		Prize Tax		Total Tax Burden
	Gold		$236		$8,750		$8,986
	Silver		$135		$5,250		$5,385
	Bronze		$2		$3,500		$3,50

American gold medal winners will pay the IRS up to $8,986. Silver medal winners will pay up to $5,385. Bronze medal winners will pay up to $3,502.

It gets even worse. Not only do our Olympic athletes have to pay taxes on their medals and prizes – chances are their competitors on the field will face no such taxation when they get home. Because the U.S. is virtually the only developed nation that taxes “worldwide” income earned overseas by its taxpayers, our Olympic athletes face a competitive disadvantage that has nothing to do with sports.

[Da Coyote]

This is fair.

After all, they didn’t earn that medal all by themselves.

They needed the Obamadork’s help. The Hillabeast’s help, and most importantly, Moooooooooochellllllle’s help.

Pay up, honkies.....

[Drill Thrawl]

Interesting.

Also note that Obama's Noble prize was tax free.

[ryan71]

The medals are largely symbolic. Not worth much.

Gold medals contain just 1% gold. The remaining metal mix is silver 92.5% and about 6% copper, which puts the material price under $650.

Silver medals are mandated by the International Olympic Committee to contain at least 550 grams of “high quality silver.” Despite the mandate and the rising price of silver, the second-place medals are worth about half of the gold medals.

Bronze medals (like the one dented in a bizarre shower accident by Brazil’s Felipe Kitadai) are made up of 97% copper, 2.5% zinc, and .5% tin. Based on current market prices, the raw value of the materials in the medals would bring less than $5.00.

[wrench]

As they aren’t employed by the Olympics, they are contractors. As contractors, ALL their expenses associated with earning the awards is tax deductible. I doubt if any of them have under $50,000 in expenses so far this year, the real successful athletes, several times that.

[hal ogen]

They are in the 1%...it is only “fair” that their monies be redistributed to the “less fortunate”. Oh, by the way, they also should give nobama’s campaign $3.

[agere_contra]

Phelps is in big trouble.

[GeronL]

gold medals are just gold plated silver medals.

heh

[A Voice]

Yep... it certainly pays to represent the good ol US of A these days.

[massgopguy]

Jim Thorpe had his medals taken away for what??????

[KarlInOhio]

Maybe they should just have Obama step up on the podium and receive the gold medal for his campaign. Then he can put his hand on his crotch for the playing of the national anthem.

[TYVets]

After all, they didn’t earn that medal all by themselves.

Agreed, since they didn't earn them they should donate the medals to the 0bama Gold Plated Campaign Fund and he would reduce their taxes by 50%.

One of those win/win deals !

[Uncle Chip]

So do those who don’t make it to the podium get food stamps and free cell phones???

[spel_grammer_an_punct_polise]

When did the “worldwide” tax laws change?

In the 70s - 80s I earned hundreds of thousands of dollars overseas and didn’t have to pay any U.S. tax on that income.

[Hostage]

This example and all examples of America’s tax insanity could end by replacing the income tax code with a more efficient, smoother, more transparent, easier to comprehend, easier to implement and collect, easier to enforce, more fair, less burdensome tax system that would boost GDP by more than 10% in the first year and revive American manufacturing while making American products and services hugely more competitive globally. What is is?

Here it is:
http://www.fairtax.org/site/PageServer?pagename=about_faq

And if you don’t like it then Shut UP and pay your income taxes.

[bgill]

It’s obama’s birthday today. They’re lucky he hasn’t demanded they send him their medals as a birthday present.

[bgill]

blah

today = this week.

[aft_lizard]

Well they must be clad or plated with a minimum 6 grams of gold..which is about give or take ten bucks 180 dollars. the rest is correct though.

[92nina]

Thanks for posting. The double taxation continues.

[publius911]

Please tell me that this is satire.

If the First Dork did not have to pay taxes on his Nobel Prize, (after all he did not earn it himself, other people did that) why are no Republicans screaming bloody murder?

I wonder if the athletes can choose to represent the US Tea Party instead?

On the other hand, maybe the athletes all think that paying taxes on their awards and sharing the wealth is a good thing.

Most highly successful Olympic Athletes do very well for themselves. It's more the principle of the thing.