Congrats you won a gold medal. Now here's your tax bill


#1

CNN Money:

Congrats you won a gold medal. Now here’s your tax bill

America’s Olympic medalists must pay state and federal taxes on the prize money they get for winning. The U.S. Olympic Committee awards $25,000 for gold medals, $15,000 for silver and $10,000 for bronze. That’s not all. Olympians also have to pay tax on the value of the medals themselves.
Gold and silver medals are made mostly of silver, while bronze medals are composed of mostly copper. Rio’s medals are among the largest and heaviest ever and contain about 500 grams of either silver or copper.
The value of a gold medal is about $564; silver is worth about $305. Bronze is worth a negligible amount so it’s not taxed.


Taxes are yet another burden for Olympians – the majority of whom are already struggling to get by. The U.S. is one of the only countries that doesn’t provide government funding to its Olympians. A handful of lucky athletes land lucrative endorsement deals. But most of them rely on small stipends from the USOC, support from local businesses or supplemental income from a day job.

Olympic medal winners may catch a break though.
Proposed federal legislation would make “the value of any medal or prize money” awarded during the Olympics or Paralympics exempt from income taxes.
The bill was passed by the Senate last month and is being considered by the House. It would apply to earnings from January 1, 2016 to January 1, 2021.
California is reviewing a similar proposal.


#2

The tax amount is negligible.


#3

Perhaps not to someone who is already struggling to pay the bills. You go out and do your country proud and then you’re taxed on it. Seems fair. :frowning:


#4

Well…I don’t think it is fair that they are taxed but the amount is negligible.


#5

They don’t recieve state funding?!


#6

No, yet US Olympians still manage to be among the most dominating athletes at the games.


#7

The decline of USSR has made it easy for US


#8

They’re being taxed on their earnings. Why is it a problem?


#9

I still don’t get it why the rate is so high. So many of the athletes are teens and young adults who have trained so long, and certainly some of the money will offset the costs of training & travel. I’d rather see heavy taxes on CEOs and stuff compared to mainly these young athletes who may train up to 40 hrs a week (especially for a gymnast), and give up a normal life in hopes of an elusive team spot and medals.


#10

I don’t have a problem with them being taxed on their earnings but to tax them on the value of the metal in the medals???


#11

CEO are taxed. Out on face book is JP Sears, his video about the olympics is spot on as to why I dont watch them. I havent watched them since the mid 80’s and couldnt care less if they are taxed on their earnings


#12

OK, this is one of those hyped up media spin stories aka a non-story. Think this through people. No one who earns little money pays any taxes. So, poor teens will not have to pay any tax at all. No matter the value of the metal in their medals.:slight_smile:


#13

If I win a car on game show I have to pay tax on the fair market value . Same thing is happening here


#14

wsj.com/articles/top-20-of-earners-pay-84-of-income-tax-1428674384


#15

The article is behind a pay wall.


#16

True, but you don’t go on a game show to represent your country.


#17

Strange, I was able to see it and I don’t subscribe.


#18

From the link I couldn’t access it either but I googled the headline and got an article that I COULD read.


#19

Maybe I’ve read too many Wall Street journal articles this month for free, and I’ve reached the limit.


#20

If you ( US citizen) live in another country you also have to file a US tax return so you are taxed by the country you live and the US as well…I don’t think other countries do that…or tax their Olympians…or people who win prizes or lotto…still…gotta keep Uncle Sam happy


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