Win a medal, pay the price

Go for the gold — but should you succeed, be prepared to dole out some gold of your own.

The U.S. Olympic Committee awards prize money to American medal winners: $25,000 for gold, $15,000 for silver, $10,000 for bronze. That prize money is taxed at a rate of 35 percent, Americans for Tax Reform calculated. On top of that, the medals themselves are taxed: You only have to fork over $2 to the IRS for the privilege of keeping your bronze medal, but carve off $236 worth from that gold medal.

Michael Phelps should have no trouble shouldering the tax burden — he makes millions in endorsements. But fellow U.S. swimmer Allison Schmitt has won two golds, a silver and a bronze in London. That’s $75,000 in total prize money — and $26,857 owed to the United States Treasury.

Nystyle709 wrote:

I have to pay taxes if I win prize money. Why shouldn't they? Being taxed at an unfair rate compared to someone else who won or made the same amount of money isn't fair, but being NOT being taxed isn't as well.

Nystyle709 wrote:

I have to pay taxes if I win prize money. Why shouldn't they? (That wasn't the point) Being taxed at an unfair rate compared to someone else who won or made the same amount of money isn't fair (This was), but being NOT being taxed isn't as well (Wasn't saying they shouldn't pay any tax. Just not at the millionaire's rate...if they're not millionaires).

Alan Smithee wrote:

Alan Smithee wrote:I was thinking about this a little more and maybe it's not a total rip off if the athlete gets a tax refund depending on the tax return they file, i.e., they overpaid according to the tax bracket they're actually in.

Add the fact that individual states also have their own tax laws. Some states don't tax an individual's personal income at all.

But if 35% of that money is just jacked regardless if one gold medal is their income for the year then fuck that shit!

Nystyle709 wrote:

LOL, according to current tax laws...that would be against the law. If a gold medal is worth 25k and that's ALL you made, you wouldn't be getting taxed the same as someone who's made 100k. And if any Olympic athlete has an accountant who is competent, it wouldn't happen. And this article is coming from FOX News. Not surprising how they made it seem like such an atrocity and got people up in arms about it.