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Thu Aug 2, 2012, 03:28 PM

I cannot believe that Olympic athletes have to pay taxes

on each medal.

Gold - $8,986
Silver - $5,385
Bronze is $3,500

WTF???

34 replies, 3241 views

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Arrow 34 replies Author Time Post
Reply I cannot believe that Olympic athletes have to pay taxes (Original post)
B2G Aug 2012 OP
MADem Aug 2012 #1
Cali_Democrat Aug 2012 #2
rocktivity Aug 2012 #19
Lydia Leftcoast Aug 2012 #21
rocktivity Aug 2012 #25
riverbendviewgal Aug 2012 #3
sadbear Aug 2012 #8
sinkingfeeling Aug 2012 #4
sharp_stick Aug 2012 #16
kestrel91316 Aug 2012 #20
Sgent Aug 2012 #22
Angry Dragon Aug 2012 #5
Retrograde Aug 2012 #6
Maeve Aug 2012 #7
rfranklin Aug 2012 #18
Tom Ripley Aug 2012 #9
DevonRex Aug 2012 #10
russspeakeasy Aug 2012 #11
B2G Aug 2012 #14
Kalidurga Aug 2012 #12
ipfilter Aug 2012 #13
rocktivity Aug 2012 #15
Chorophyll Aug 2012 #17
JI7 Aug 2012 #23
WolverineDG Aug 2012 #24
Posteritatis Aug 2012 #26
pinboy3niner Aug 2012 #27
Dyedinthewoolliberal Aug 2012 #28
GoCubsGo Aug 2012 #29
WolverineDG Aug 2012 #32
fascisthunter Aug 2012 #30
Turbineguy Aug 2012 #31
alcibiades_mystery Aug 2012 #33
backscatter712 Aug 2012 #34

Response to B2G (Original post)

Thu Aug 2, 2012, 03:30 PM

1. By the time they get done itemizing, they don't pay much if anything.

They might want to take tips from Ann Romney.

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:31 PM

2. Hasn't this ALWAYS been the case?

Why is this all of a sudden an issue?

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Response to Cali_Democrat (Reply #2)

Thu Aug 2, 2012, 04:06 PM

19. More to the point, why SHOULD it be an issue?

Last edited Sat Sep 6, 2014, 09:02 PM - Edit history (5)

The value of prizes you win (the ones you compete for as well the ones you win in a drawing), has always been taxable. And what with the deductions athletes can take (clothing, travel, research, equipment, gym membership fees, etc.), they come out WAY ahead!


rocktivity

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Response to rocktivity (Reply #19)

Thu Aug 2, 2012, 05:37 PM

21. Lottery and sweepstakes prizes are taxable, too

Look at your state lottery's website. They specifically say that they deduct taxes before giving you your check.

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Response to Lydia Leftcoast (Reply #21)

Thu Aug 2, 2012, 08:51 PM

25. Sorry, I misspoke -- you're absolutely right, of course

Last edited Fri Aug 3, 2012, 09:12 AM - Edit history (1)

as the winners of Oprah's "You're Getting A Car!" episode found out.


rocktivity

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Response to riverbendviewgal (Reply #3)

Thu Aug 2, 2012, 03:34 PM

8. That's right!

This is another false right-wing outrage. They pay taxes on the cash prizes they get for winning medals. They don't pay taxes on the medals themselves.

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:31 PM

4. I guess that's a 35% tax rate on the check that comes with the medals.

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Response to sinkingfeeling (Reply #4)

Thu Aug 2, 2012, 03:57 PM

16. 35% only if you pull in

about 388k a year and have no deductions. Other than Michael Phelps, and the pros, I don't see a lot of them needing to worry about the IRS coming after them.

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Response to sinkingfeeling (Reply #4)

Thu Aug 2, 2012, 05:34 PM

20. WHAT check?? They win medals, not money.

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Response to kestrel91316 (Reply #20)

Thu Aug 2, 2012, 05:39 PM

22. They win money as well

5-15K

Now... there costs in competing is deductible from that amount... or they can take the same "out" that nobel prize winners do and donate the money (directly, never take possession) to a non-profit.

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:31 PM

5. I believe that if you win a gold you are taxed on the value of the gold -- $675

They also get $25,000

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:32 PM

6. If they're income, yes

but they can deduct expenses incurred to get those medals - training, transportation, equipment, etc., which probably run a lot more than $9000

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Response to Maeve (Reply #7)

Thu Aug 2, 2012, 04:00 PM

18. They can deduct all their unreimbursed expenses involved in training...most likely would even out...

 

An athlete who wins a medal bonus would be free to deduct any unreimbursed expenses from the bonus, lowering -- or maybe even eliminating -- their tax hit. In fact, accountants say an athlete would be crazy not to.

"Anything used for the production of income is deductible," said Brad Bell, a partner with BGBC Partners LLP in Indianapolis who specializes in accounting for athletes.

Greg Shafer, an accountant in Colorado Springs, Colo., added that "if they were my client and had to pay that kind of tax, I would say, ‘Well, what are your ordinary and necessary expenses?’ That could be travel, uniforms, cell phone use." The U.S. Olympic Committee is based in Colorado Springs, and Shafer said he has provided accounting services to athletes.

So expenses for gymnasts might include tumbling classes, payments to coaches and travel costs to international meets. Cyclists would pay for new bikes and maintenance. An Olympian fencer told Forbes.com that her expenses for equipment and competitions run around $20,000 per year.


http://www.politifact.com/truth-o-meter/statements/2012/aug/01/americans-tax-reform/do-olympic-medalists-owe-9000-irs/


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Response to B2G (Original post)

Thu Aug 2, 2012, 03:37 PM

9. I can not believe that teachers, fire fighters, health workers, and others who actually contribute

to the common good have to pay taxes

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:37 PM

10. Sure, the NBA players will pay that much. Nobody else will. Nt

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:44 PM

11. Then let's stop taxing military, cops, firefighters, etc.

It's just more repub bullshit. (or did Obama just invent this tax yesterday)..

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Response to russspeakeasy (Reply #11)

Thu Aug 2, 2012, 03:51 PM

14. Aren't deployed military exempt from federal taxes?

I fully realize Obama didn't invent this tax and I didn't realize they received cash rewards.

Mkay?

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:44 PM

12. Rule of thumb

If a RWer is outraged sniff around for smoke and have a fire extinguisher handy. I have to my embarrassment believed things they say. In too many cases I have found out later it was either a lie or they twisted facts so much it might as well have been a lie. In this case I am going to say it might as well be a lie, because the IRS has never made someone pay taxes on their medals. It would be as someone said a PR nightmare.

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:48 PM

13. Who doesn't win a cash prize and recieve a 1099 along with it.

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:52 PM

15. That's the taxes on the value of the metal in the medal, plus an "honorarium"

which is defined as "a payment given to a professional person for services for which fees are not legally or traditionally required." Gold medalists get $25K, silver $15K, bronze $10K. But you're always expected to pay taxes on the value of prizes you win (either through competition or the luck of the draw).


rocktivity

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Response to B2G (Original post)

Thu Aug 2, 2012, 03:59 PM

17. Someone has to make up for Mitt Romney never paying any taxes, ever.

Except that would be all of US, and we don't have awesome jobs like swimming and gymnastics. Also, we probably won't be getting all kinds of free stuff or product endorsements.

I hope I don't sound insensitive or anything.

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Response to B2G (Original post)

Thu Aug 2, 2012, 05:45 PM

23. i don't see the problem with this

if we win a prize worth a certain amount we have to do the same. if some poor person won a car they would have to pay tax on it also.

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Response to B2G (Original post)

Thu Aug 2, 2012, 06:03 PM

24. They pay taxes on the $ prize that goes along with the medal

Just like anyone who wins the lottery, the publisher's clearinghouse sweepstakes, & The Price is Right. This is the new RW meme, btw.

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Response to B2G (Original post)

Thu Aug 2, 2012, 08:52 PM

26. Doesn't a 2x4 actually have more actual precious metal in it than any of the medals, too?

I can't see how a gold medal that's less than one percent gold can have that kind of value. They're not debased as much as homeopathic by now.

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Response to B2G (Original post)

Thu Aug 2, 2012, 08:59 PM

27. RW BS with figures based on highest tax rates, no deductions

Tax brackets and deductions of Olympic athletes mean that most won't owe any taxes on their honoraria.

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Response to B2G (Original post)

Thu Aug 2, 2012, 09:02 PM

28. Y'all need to visit Snopes

'cause this isn't exactly true.......
http://www.snopes.com/politics/taxes/olympics.asp

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Response to B2G (Original post)

Thu Aug 2, 2012, 09:05 PM

29. I can't believe Olympic athletes get money for each medal.

This is news to me. That being said, income is income. And, if they're paying THAT much in taxes, they need to find an new accountant, or get better tax software.

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Response to GoCubsGo (Reply #29)

Thu Aug 2, 2012, 09:19 PM

32. They get it from the US Olympic Committee nt

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Response to B2G (Original post)

Thu Aug 2, 2012, 09:06 PM

30. well, because the rich and wealthy are Morbidly well-Off

...we can't harm the sensitive bubble they live in.

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Response to B2G (Original post)

Thu Aug 2, 2012, 09:10 PM

31. Marco Rubio

to the rescue!

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Response to B2G (Original post)

Thu Aug 2, 2012, 09:19 PM

33. Do you want to ban taxation on all awards, or just these?

Gimme a break with this fake issue.

Are you really this easily manipulated?

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Response to B2G (Original post)

Thu Aug 2, 2012, 09:28 PM

34. Yeah, I heard this horseshit earlier today. It's already been shown to be right-wing hot air. n/t

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