YOUR TURN: Should The IRS Tax Gold Medals?
Do you think Olympic champions should be taxed on their medals and prize earnings?
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Leave it to the IRS to be a buzzkill.
According to the Huffington Post, a national pat on the back isn't the only thing awaiting our returning Olympic champions: medals and prize money are both subject to income tax bills that can reach as high as $8500 a win, depending on one's ranking.
A gold medal - valued by CNN at approximately $650 - could cost American athletes about $236 in taxes. A bronze metal, worth about $5, would only cost about $2 in taxes
The big costs, instead, come from cash prices: The U.S. Olympic Organizing Committee will award London champions $25,000 for a gold medal, $15,000 for silver and $10,000 for bringing home a bronze, Reuters reports.
At a 35 percent income tax rate, bronze medalists will owe the IRS a total of $3,500, silver medalists $5,250 and top finishers $8,750.
Readers: do you think Olympians should be taxed on their medals and prize money? Or should these national champions get a little break for their effort?
Liana Rogue
8:48 am on Thursday, August 9, 2012
yes! It's their job! It's income.
Phe
11:32 am on Thursday, August 9, 2012
I can understand the tax on the earned income of the cash prizes, but the medal?! By that logic, anyone who owns gold jewlery should be taxed on it when they're given a piece.
Liana Rogue
11:38 am on Thursday, August 9, 2012
well when you're given jewelry just like cash as a gift, that falls under gift tax rules which have certain annual limits while a medal that they earn is income since it's not really a gift that was given for no reason.
david mokal
2:51 pm on Thursday, August 9, 2012
You won it NO TAX they are NUTS. Its the Olympics who's stupid idea is this.
Tony H.
3:05 pm on Thursday, August 9, 2012
While we can all appreciate the hard work and determination required to "win" one of these medals, these are professional athletes who earn a living through competition income. If you were to exempt athletes from medal earnings, how would you limit the exemption? Would it just be the Olympics? What about the World Series or Stanley Cup? Should we bifurcate their income based on when and where they played during the year? Also, how would we limit the definition of an athlete? What happens if a determined construction worker wins a work competition and receives a month's salary as a prize (rather than normal salary)? These are just a few of the thousands of questions that would need to be addressed if you think about exempting medal income. That main beneficiaries would be tax accountants to sort through the complex rules, not the athletes.
Diana
6:33 am on Friday, August 10, 2012
Exactly. First of all, as previously mentioned, all winnings are taxable. Have been for pretty much ever. Secondly, this is their job. I assure you that whatever other money they make doing their job is taxed. What's so special about the Olympics? I know you're picturing adorable little Gabby, but Kobe Bryant is there too. Would anyone argue he shouldn't pay taxes?
Liana Rogue
3:02 pm on Thursday, August 9, 2012
thank your prior congress people that write the code they themselves evade
All winnings, gambling and etc are taxable... even fantasy football
James
2:54 pm on Sunday, August 12, 2012
Do they tax their uniforms that were made in China? Change, Hope and Forward right down the toilet.
Diana
5:21 pm on Sunday, August 12, 2012
Olympic winnings have always been taxable, this is not new. Also, I'm pretty sure that the White House wasn't consulted about the manufacture of Olympic uniforms.
James
7:21 pm on Sunday, August 12, 2012
I'm pretty sure they have farmed most American jobs over there smart @&@.
Diana
7:27 pm on Sunday, August 12, 2012
I'm pretty sure you're one of those people who's always "pretty sure" while being completely wrong.
James
7:38 pm on Sunday, August 12, 2012
Coming from a dolt like you that's a compliment.
Diana
7:41 pm on Sunday, August 12, 2012
Glad you enjoyed it, welcome to Patch. I'm pleased you can be here, we really need more people who act as though President Obama slept with their prom date.
James
7:49 pm on Sunday, August 12, 2012
He couldn't have she grew up in America
Diana
7:52 pm on Sunday, August 12, 2012
Aaaaaaaaaaand scene.
James
7:54 pm on Sunday, August 12, 2012
.