Go for the Gold....and pay the IRS

LockOut · 08-02-2012, 09:34 AM

Quote:

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 Franklin—who's a high school student—is 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 NCAA—the 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.

http://www.weeklystandard.com/blogs/...rs_649187.html

kelmac07 · 08-02-2012, 09:36 AM

WTF is right. Total BS.

363 · 08-02-2012, 09:38 AM

that sucks

Jefft72 · 08-02-2012, 09:48 AM

Wow. I didn't realize that there were cash awards for the medals won.

icehog3 · 08-02-2012, 09:52 AM

They are considered honorariums. It would be nice if someone stepped up and took care of this, but these Olympic athletes aren't training and competing for money, and often are sponsored for their training costs. They do it for love of their sport.

Mugen910 · 08-02-2012, 11:56 AM

Quote:

Originally Posted by icehog3

They are considered honorariums. It would be nice if someone stepped up and took care of this, but these Olympic athletes aren't training and competing for money, and often are sponsored for their training costs. They do it for love of their sport.

I believe the IOC takes care of this for the athletes.

markem · 08-02-2012, 12:22 PM

If it counts as income under IRS rules, then it will be taxed as income. Note that the athletes probably pay many things out of pocket, so their schedule A or schedule C will contain possibly many valid deductions that will reduce their taxable income, etc. etc.

btw, the person who wrote the original diatribe assumed the highest tax rate in the land. If all they earned was $25K, the tax would not even be close to what is being claimed.

If you don't like it, don't blame the IRS, blame the people responsible for writing the laws that the IRS is required to follow.

just my opinion, of course.

Starscream · 08-02-2012, 02:46 PM

Quote:

Originally Posted by markem

If it counts as income under IRS rules, then it will be taxed as income. Note that the athletes probably pay many things out of pocket, so their schedule A or schedule C will contain possibly many valid deductions that will reduce their taxable income, etc. etc.

btw, the person who wrote the original diatribe assumed the highest tax rate in the land. If all they earned was $25K, the tax would not even be close to what is being claimed.

If you don't like it, don't blame the IRS, blame the people responsible for writing the laws that the IRS is required to follow.

just my opinion, of course.

How are the winnings categorized? Is it considered earned income or prize winnings? Prize winnings is taxed higher than earned income I beleive. I'm an idiot when it comes to this subject, so anyone who knows feel free to correct me.

markem · 08-02-2012, 02:49 PM

Quote:

Originally Posted by Starscream

How are the winnings categorized? Is it considered earned income or prize winnings? Prize winnings is taxed higher than earned income I beleive. I'm an idiot when it comes to this subject, so anyone who knows feel free to correct me.

Don't know, Andy. My accountant has never asked if I had prize winnings (I haven't), so didn't know that there was such a category in the federal code. Have you had to pay a separate federal tax on prize winnings?

dave · 08-02-2012, 10:09 AM

I guess I don't understand the outrage. I'm taxed on money earned or given to me. Why not them?

Starscream · 08-02-2012, 10:52 AM

Quote:

Originally Posted by dave

I guess I don't understand the outrage. I'm taxed on money earned or given to me. Why not them?

I was thinking the same thing.

E.J. · 08-02-2012, 11:22 AM

X 3

emopunker2004 · 08-02-2012, 02:52 PM

Still BS any way you slice it.

GreekGodX · 08-02-2012, 03:01 PM

Quote:

Originally Posted by emopunker2004

Still BS any way you slice it.

They shouldn't have to pay taxes on their olympic medal winnings. Some of the athletes make nothing from competing in the olympics, and can't really have a job since they have to train year round.

markem · 08-02-2012, 03:04 PM

http://www.snopes.com/politics/taxes/olympics.asp

shilala · 08-02-2012, 07:06 PM

I think snopes is full of sh1t.

Genetic Defect · 08-02-2012, 07:44 PM

Crazy

drevim · 08-02-2012, 09:46 PM

Quote:

Originally Posted by shilala

I think snopes is full of sh1t.

How about MSN/Foxsports...

http://msn.foxsports.com/olympics/st...?ocid=ansfox11

This is all over right now, so snopes doesn't have the market cornered. And lawmaker are involved with trying to get it overridden.

I have mixed feelings about it. I can't imagine the dedication to get to the point of winning a medal, so they deserve what they get. On the flip side Phelps is somewhere in the neighborhood of $400,000 in medal monies alone, not counting endorsements, not sure he shouldn't have to pay something.

yachties23 · 08-06-2012, 09:10 AM

Quote:

Originally Posted by drevim

How about MSN/Foxsports...

http://msn.foxsports.com/olympics/st...?ocid=ansfox11

This is all over right now, so snopes doesn't have the market cornered. And lawmaker are involved with trying to get it overridden.

I have mixed feelings about it. I can't imagine the dedication to get to the point of winning a medal, so they deserve what they get. On the flip side Phelps is somewhere in the neighborhood of $400,000 in medal monies alone, not counting endorsements, not sure he shouldn't have to pay something.

Phelps also has huge endorsement deals from Wheaties, and Subway, I'm sure he is doing fine.

Coach Deg · 08-02-2012, 09:55 PM

I personally do not think they should get taxed on these medal awards, but I do feel it works out in the long run.

- if you win gold and parlay it into endorsement deals a couple of thousand is not going to hurt you.

- if you win gold and do not have all of the endorsements, you will be able to write off all your training expenses and get it all back at tax time. ( I believe, I could be wrong)

08-02-2012, 09:36 AM	#2
kelmac07 Resident Maduro Whore!! Join Date: Apr 2009 First Name: Mac Location: Newport News, VA Posts: 27,322 Trading: (218)	Re: Go for the Gold....and pay the IRS WTF is right. Total BS. __________________ Dom in the MLB thread "I could probably get you to wear a Yankee hat for a Maduro!"

08-02-2012, 09:38 AM	#3
363 Infecting Via PM Join Date: May 2012 First Name: Brendon Location: Maryland Posts: 1,773 Trading: (35)	Re: Go for the Gold....and pay the IRS that sucks __________________ Support our Troops "do NOT put pizza in your briar without letting it cool off Brendon" - Sterns

08-02-2012, 09:48 AM	#4
Jefft72 Still Watching My Back Join Date: Oct 2011 First Name: Jeff Location: League City, TX Posts: 219 Trading: (2)	Re: Go for the Gold....and pay the IRS Wow. I didn't realize that there were cash awards for the medals won.

08-02-2012, 09:52 AM	#5
icehog3 Admiral Douchebag Join Date: Oct 2008 First Name: Tom Location: Clermont, Kentucky Posts: 71,304 Trading: (60)	Re: Go for the Gold....and pay the IRS They are considered honorariums. It would be nice if someone stepped up and took care of this, but these Olympic athletes aren't training and competing for money, and often are sponsored for their training costs. They do it for love of their sport. __________________ Thanks Dave, Julian, James, Kelly, Peter, Gerry, Dave, Mo, Frank, Týr and Mr. Mark!

08-02-2012, 12:22 PM	#7
markem Bunion Join Date: Oct 2008 First Name: Mark Location: Second Star on the Right Posts: 22,622 Trading: (47)	Re: Go for the Gold....and pay the IRS If it counts as income under IRS rules, then it will be taxed as income. Note that the athletes probably pay many things out of pocket, so their schedule A or schedule C will contain possibly many valid deductions that will reduce their taxable income, etc. etc. btw, the person who wrote the original diatribe assumed the highest tax rate in the land. If all they earned was $25K, the tax would not even be close to what is being claimed. If you don't like it, don't blame the IRS, blame the people responsible for writing the laws that the IRS is required to follow. just my opinion, of course. __________________ I refuse to belong to any organization that would have me as a member. ~ Groucho Marx

08-02-2012, 10:09 AM	#10
dave Have My Own Room Join Date: May 2011 First Name: Dave Location: Northern VA Posts: 1,180 Trading: (15)	Re: Go for the Gold....and pay the IRS I guess I don't understand the outrage. I'm taxed on money earned or given to me. Why not them?

08-02-2012, 11:22 AM	#12
E.J. I'm nuts for the place Join Date: Sep 2009 Posts: 3,218 Trading: (21)	Re: Go for the Gold....and pay the IRS X 3

08-02-2012, 02:52 PM	#13
emopunker2004 Central Fla rollin Join Date: Jan 2011 First Name: Justin Location: Winter Springs, FL Posts: 6,171 Trading: (46)	Re: Go for the Gold....and pay the IRS Still BS any way you slice it. __________________ Cigar Asylum: Where all are equal, unless you are from CA, then you are more equal.

08-02-2012, 03:04 PM	#15
markem Bunion Join Date: Oct 2008 First Name: Mark Location: Second Star on the Right Posts: 22,622 Trading: (47)	Re: Go for the Gold....and pay the IRS http://www.snopes.com/politics/taxes/olympics.asp __________________ I refuse to belong to any organization that would have me as a member. ~ Groucho Marx

08-02-2012, 07:06 PM	#16
shilala Dear Lord, Thank You. Join Date: Oct 2008 First Name: Scott Posts: 13,721 Trading: (252)	Re: Go for the Gold....and pay the IRS I think snopes is full of sh1t. __________________

08-02-2012, 07:44 PM	#17
Genetic Defect difetosso Join Date: Oct 2008 First Name: Perry Location: An elevator Posts: 5,202 Trading: (5)	Re: Go for the Gold....and pay the IRS Crazy

08-02-2012, 09:55 PM	#20
Coach Deg C O W eieio. Join Date: May 2009 First Name: Mike Location: Hudson, FL Posts: 2,853 Trading: (59)	Re: Go for the Gold....and pay the IRS I personally do not think they should get taxed on these medal awards, but I do feel it works out in the long run. - if you win gold and parlay it into endorsement deals a couple of thousand is not going to hurt you. - if you win gold and do not have all of the endorsements, you will be able to write off all your training expenses and get it all back at tax time. ( I believe, I could be wrong)