US Olympic Medal Winners Get Bonuses and Tax Bill

Some debt-strained nations give Olympic champions big payouts. And some want to tax their medals.

www.cnbc.com/id/48463442

A quick way to kill the Olympic.

As much as I dislike the current tax system, I believe there is absolutely no reason to exempt them from paying the tax. Lots of people work physically hard every day and pay income taxes all their lives, so fair is fair. Besides, they will go on to make zillions in endorsements, etc.

Then tax them on the endorsements. The money and the cash value of the medal themselves should be considered one time gifts, since it isn’t contract work or a job, so it isn’t “income” in the traditional sense.

Except for the effort involved, there is no difference between winning $25,000 for a gold medal and winning $25,000 in the lottery.

Ya, little thing about the effort involved and the fact that they are representing the best of what we are as a country. :shrug:

The point is that they don’t compete for the money (hypothetically). They compete for the honor of the gold and do it for national pride…and we reward them by taking part of it away.

That is just stupid. Yeah sure tax the money they earn from sponsors etc. But they shouldn’t tax the medal. After all the whole country benefits from them.

How is this any different from winning a golf tournament, or the superbowl?

Tax them on both. There is absolutely no reason to give them preferential treatment just because they won it in the Olympics.

The money and the cash value of the medal themselves should be considered one time gifts, since it isn’t contract work or a job, so it isn’t “income” in the traditional sense.

They aren’t gifts because not everyone who participated got a “gift”. It’s special treatment like this that makes the tax code the unfair monster that it is.

I don’t see any national pride gained by winning. The nation didn’t perform; the athletes did. We tax the reward for hard physical labor by those who take part in the economy. Athletes should not be treated any better just because people like to watch them and not ditch diggers. Should we not tax actors on the millions they make for being in a movie just because people like to watch them?

Please explain how.

I have to disagree. They are not in it for their countries. They are in it for themselves, just like every other athlete. They may love their sport, but that does not mean they are not going to the Olympics with the hopes of getting endorsement deals, and sponsors. I actually think it is ridiculous to have the athletes divided by country, since the country does not get anything from them. Our government (USA) has nothing to do with the training or performance of those in the Olympics, so there isn’t a reason to use terms like “Team USA”. I am happy for all who win medals, not only those from my country of origin. Having a high medal count does not make the USA a better country than any other. It means the athletes had greater skill, were better trained, tried harder or had a better day.

My sister knows the mother of one of the medalists & my daughter’s teammates swam with her for years. We all know monetary reward has a LOT to do with it!! Yes, it is an honor to be the best at the Olympics, but don’t kid yourself into thinking they are not competing for money!

Always been taxable in the US I see no reason it should not.

So football players shouldn’t be taxed for their Super Bowl bonus? No taxes for the winners of the World Series?

Actually I think the medal should be exempt, but the cash prize shouldn’t be tax exempt. What does come into play - where do they pay the tax? It was actually earned in the UK - do they get to tax the income or does the US tax them or do both hit them them up?

If soldiers have to pay more income tax on their combat pay I really don’t see why Olympic athletes should be exempt from income taxes.

Excellent point !!!

…If soldiers have to pay more income tax on their combat pay I really don’t see why Olympic athletes should be exempt from income taxes.

I can see a much better justification for exempting combat pay than income from participation in sports. :sad_yes:

There should be no tax on the medals an athelete wins, unless he sells them.

There is no real value for the medal unless it’s put on the market, but even then, how much is some one else gold medal worth?

The other incomes they received of course should be taxed.

That all being said, I heard a tax accountant on the Michael Smercornish show, who said, they’d have no problem finding tax writes for an Olympic athlete where they would pay little if any tax at all.

Jim

I agree with you on the selling part - but you would be surprised what people will pay for a gold medal. How much do you think a 1980 Olympic hockey gold medal is worth?

Combat pay is exempt from Income tax

I suspect they would have more than enough deductions to offset the prize money they receive.

Actually only portions are exempt (for officers) and then only if it is in a tax exempt combat zone.

usmilitary.about.com/od/2011pay/a/combatpay.htm

$225 a month vs thousands for an Olympic medal.

Next thing you know, we will be taxing service members and veterans on their medals.

Cut em a break on the medal and tax the endorsements.

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