Tax on Olympic medals?
+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 10 of 16

Thread: Tax on Olympic medals?

  1. #1
    Posting Addict GloriaInTX's Avatar
    Join Date
    Jul 2008
    Location
    Dallas, TX
    Posts
    7,685

    Default Tax on Olympic medals?

    Should prize money awarded for Olympic medals be taxed?

    American Olympians are leaving Sochi, Russia, with 28 medals -- nine gold, seven silver and 12 bronze -- second only to host nation Russia.

    But unless Congress takes action, U.S. Olympic and Paralympic winners are going to get hammered by the tax man for the medals and prizes they received.

    In a last-ditch bid to address that, South Dakota Republican Sen. John Thune has proposed legislation that would let Olympians off the hook with the IRS.

    "What my bill would do would be to exempt these medal winners from income tax liability when they come home from the Olympic games and, you know, we have a tendency in this country, particularly in the tax code to punish success, and nowhere is that more evident than the way we treat our Olympic athletes who work for years and years and years in preparation for these games and then come home to a big fat tax bill," Thune told Fox News in an interview.

    The bill has bipartisan support and is cosponsored by Sens. Marco Rubio, R-Fla.; Chuck Schumer, D-N.Y.; Mark Kirk, R-Ill.; Kirsten Gillibrand, D-N.Y.; Tim Scott, R-S.C.; Roger Wicker, R-Miss.; John Hoeven, R-N.D.; and Johnny Isakson, R-Ga.

    The U.S. Olympic Commission awards cash prizes to Olympians who win a medal -- $25,000 for gold, $15,000 for silver and $10,000 for bronze. But the money is considered earned income abroad and subject to IRS taxation.

    The marginal-income tax bracket in which an Olympian falls would decide how much he or she must pay. According to estimates by Americans for Tax Reform, those in the top bracket could pay as much as $9,900 for gold. Olympians in that bracket also could pay $5,940 for a silver and $3,960 for a bronze medal.

    Thune's bill has received support from the White House.

    "The president believes we should support efforts to ensure that we're doing everything we can to honor and support our Olympic athletes who have volunteered to represent our nation at the Olympic games. We still support this effort," White House spokesman Bobby Whithorne said.

    But so far, Senate Majority Leader Harry Reid has not signaled a willingness to take up the measure. Reached for comment, a Reid spokesman said they were not familiar with the bill.

    "I'd like to get enough critical mass behind this so Harry Reid has no option but to move it on the Senate floor," Thune said.

    Thune suggested he'd like President Obama to pressure Senate leaders to bring up the bill.

    "The president says he agrees with us on a lot of things that don't -- he doesn't follow through on, but that'd be great if he'd pick up the phone," Thune told Fox News.
    Senator pushing bill to keep US Olympic winners from being taxed on prizes | Fox News
    Mom to Lee, Jake, Brandon, Rocco
    Stepmom to Ryan, Regan, Braden, Baley
    Granddaughters Kylie 10/18/2010 & Aleya 4/22/2013


    I never consider a difference of opinion in politics, in religion, in philosopy, as a cause for withdrawing from a friend. --Thomas Jefferson

  2. #2
    Posting Addict Spacers's Avatar
    Join Date
    Dec 2003
    Location
    My avatar is the tai chi -- a symbol of the eternal cycle of life
    Posts
    16,559

    Default

    Why should it not be taxed? When anyone else goes to another country, wins a contest, and brings home cash, it's taxed. Why should the Olympics be any different? And I wonder how many Olympians are really in the top tax bracket? From the bios I heard watching the coverage, it seems that many of them survive on part-time jobs, sponsorships, and/or have a spouse or parents who support them.

    Also, the entire amount isn't necessarily taxable because of personal exemptions and deductions. Assuming the standard deduction, for a gold medal and married couple, only $5000 would be taxable, which would be a $500 tax; for an individual, $15,000 would be taxable, about $1800 in tax. If the person itemizes their deductions, their personal tax liability could be even lower.
    The number of U.S. states in which a person can marry the person they love regardless of gender: 30 and counting!

  3. #3
    Community Host
    Join Date
    Aug 2006
    Posts
    13,720

    Default

    I know personally one of the summer Olympic bronze winners. Years of work and training go into the Olympics. Long days with no promise of reward. I think, do not tax the medal, but do tax any endorsements.

    ~Bonita~

  4. #4
    Posting Addict Spacers's Avatar
    Join Date
    Dec 2003
    Location
    My avatar is the tai chi -- a symbol of the eternal cycle of life
    Posts
    16,559

    Default

    Years of work and training with no promise of reward go into other things like golf tournaments and Nascar races. Do you think those winnings should also not be taxed? I mean, really, the same argument could be made for ballet dancers, violin players, football players, and English Literature majors.
    The number of U.S. states in which a person can marry the person they love regardless of gender: 30 and counting!

  5. #5
    Posting Addict KimPossible's Avatar
    Join Date
    Apr 2002
    Posts
    20,290

    Default

    Well to be fair I don't think its fair to compare an olympian prize to professional sports where all that money you bring in actually provides you with your income.

    But with that being said.... at the same time I don't think high achievement or working hard or putting your heart and soul into something means that you are somehow magically tax exempt. So while I"m saying Stacey's comparisons aren't 100% pure, i think her point is still valid as I'm sure there are people out their that bust their butts for all sorts of things and don't go tax exempt on anything.

  6. #6
    Community Host
    Join Date
    Aug 2006
    Posts
    13,720

    Default

    Quote Originally Posted by KimPossible View Post
    Well to be fair I don't think its fair to compare an olympian prize to professional sports where all that money you bring in actually provides you with your income.

    But with that being said.... at the same time I don't think high achievement or working hard or putting your heart and soul into something means that you are somehow magically tax exempt. So while I"m saying Stacey's comparisons aren't 100% pure, i think her point is still valid as I'm sure there are people out their that bust their butts for all sorts of things and don't go tax exempt on anything.
    So if your child one say a top spelling be with a cash prize of $500, would you have them file taxes?

    ~Bonita~

  7. #7
    Posting Addict KimPossible's Avatar
    Join Date
    Apr 2002
    Posts
    20,290

    Default

    Quote Originally Posted by AlyssaEimers View Post
    So if your child one say a top spelling be with a cash prize of $500, would you have them file taxes?
    I'm not following. The question is should olympic prize money be legally tax exempt.

    This is not a question about not filing taxes when you are supposed to.

  8. #8
    Community Host
    Join Date
    Aug 2006
    Posts
    13,720

    Default

    Quote Originally Posted by KimPossible View Post
    I'm not following. The question is should olympic prize money be legally tax exempt.

    This is not a question about not filing taxes when you are supposed to.
    If merit based prize money should be taxed.

    ~Bonita~

  9. #9
    Posting Addict GloriaInTX's Avatar
    Join Date
    Jul 2008
    Location
    Dallas, TX
    Posts
    7,685

    Default

    Quote Originally Posted by Spacers View Post
    Years of work and training with no promise of reward go into other things like golf tournaments and Nascar races. Do you think those winnings should also not be taxed? I mean, really, the same argument could be made for ballet dancers, violin players, football players, and English Literature majors.
    The difference is that Olympic athletes aren't allowed to earn any money at their sport so they can compete representing the U.S. So they are essentially giving up income they could be earning so they can represent their country. I think based on that sacrifice they should be allowed to keep the medal awards tax free. Other countries fully support their athletes, since we don't I think that is a small price to pay.

    How Olympic Athletes Fund their Dream
    Mom to Lee, Jake, Brandon, Rocco
    Stepmom to Ryan, Regan, Braden, Baley
    Granddaughters Kylie 10/18/2010 & Aleya 4/22/2013


    I never consider a difference of opinion in politics, in religion, in philosopy, as a cause for withdrawing from a friend. --Thomas Jefferson

  10. #10
    Posting Addict KimPossible's Avatar
    Join Date
    Apr 2002
    Posts
    20,290

    Default

    Quote Originally Posted by AlyssaEimers View Post
    If merit based prize money should be taxed.
    There are already laws about children and earned income....and if its over a certain amount, its legally supposed to be taxed. 500 dollars does not fall into that amount. But if it was large enough to meet the requirements? Yes taxes are supposed to be filed and I don't have any problem with that. I'm not going to say they shouldn't be taxed because they "Worked so hard"

+ Reply to Thread
Page 1 of 2 12 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
v -->

About Us | Contact Us | Privacy Policy | Sitemap | Terms & Conditions