"Gubmint do take a bite, don't she?"
Posted on 02/09/2014 11:36:34 AM PST by SeekAndFind
Somebody has to cover the cost of Sandra Fluke's contraceptives. So, with that in mind, government mafia extortionists disguised as the IRS are eagerly awaiting the tally on Olympic gold, silver and bronze.
At the SOTU, Barack Obama said of the Sochi Olympics: "We believe in the inherent dignity and equality of every human being, regardless of race or religion, creed or sexual orientation."
Then he said, "Next week the world will see one expression of that commitment when Team USA marches the red, white and blue into the Olympic stadium and brings home the gold."
Translation: The president is sending delegates, some of whom are homosexual, to Putin's gay-unfriendly Russia. Their job is to gaily cheer on athletes from whom the IRS hopes they can extort cash on behalf of Obama.
Like all earned income, prizes awarded by the U.S. Olympic Committee (USOC) are subject to federal taxes.
That means if an elite athlete has spent an entire life training for the Olympics and manages to win a medal, he or she now owes the U.S. Government a chunk of the monetary prize.
Olympic gold is worth $25,000; silver $15,000; and bronze $10,000. So, gold-medal-winning snowboarder Sage Kotsenburg had better be stuffing some of his hard earned winnings into an IRS envelope. Those in the 39.6% tax bracket, like high-earning gold medalist Shaun White, will have to cough up $9,900 on every $25,000 medal they win.
(Excerpt) Read more at americanthinker.com ...
This is based on the cash stipends the USOC is giving to medalists. Not based on some “value” of the medal. IOW, the athletes are receiving $25,000 cash for gold etc. This is the same as any athletes receiving a salary or bonus.
I bet they spent more money on training.
“Some countries are actually paying their athletes for winning Gold medals.
Ours’ makes them pay.
What a Country!”
Do you advocate the tax payer paying money to Olympic athletes?
Gotta pay for that “free” ObamaCare somehow and these athletes are among some of the few Americans still working.
The amounts quoted above are the cash prizes given by the US Olympic Committee. The taxes are not on the medals themselves (though selling them will incur taxes.) So...I guess by that standard, we are losers too.
I dont know. Seems like they gave up their time, energy and expertise in exchange for the prize. Hardly seems like gain to me. Unless, that is, one sees their time, energy, and expertise as having no value. But that’s just one crazy man’s opinion! :)
Congress has yet to exempt the winnings from Olympics from the recipients. Until Congress acts, the winnings are includible in income. There is no surprise here. But, like some of the other posters are noting, the athletes are also allowed to deduct the expenses associated with their training, travel, and equipment. That is not insignificant.
Problem is the lump sum and it is taxed as thought you make that much every week. If you have enough money to live on it’s ok as it will come back to you in your return. If you are poor, and they tax you to the max after a medal, it hurts waiting a year to get it back.
“Some countries are actually paying their athletes for winning Gold medals.
Ours’ makes them pay.
What a Country!”
Yes, and, of course, that’s AFTER their parents have probably spent six figures out of THEIR pockets on their children’s goals, goals that bring glory to their country - as opposed to other countries that not only pay for promising athletes but give them a stipend.
I never knew they were actually gold, silver and bronze, I always thought they were just typical cheap lead covered with plating..........
"Gubmint do take a bite, don't she?"
Thanks SeekAndFind.
thats just the disincentive our athletes need to lose bigtime..
” But, like some of the other posters are noting, the athletes are also allowed to deduct the expenses associated with their training, travel, and equipment. That is not insignificant.”
You mean, for all of the 10-30 years that they have been preparing for it? Their parents, also?
I know Major League baseball scouts who have turned down the award of a World Championship ring, because they can’t pay the taxes on it from their salary.
We are just about the ONLY country that taxes income earned overseas.
U-S-A. U-S-A!
No, I don’t think that’s so.
The athletes are receiving the money in a foreign country from a non-U.S. organization. The non-U.S. organization would have no reporting requirement to the U.S. nor any withholding requirement.
Yes, the money is taxable to the athlete, but they will be required to pay estimated taxes, if necessary. Some of the athletes make tons of money through endorsements, but many are just amateurs with minimal income. After off-setting expenses, a lot of the athletes won’t owe any additional taxes.
There's only a few events that require private coaches such as the figure skating and gymnastics and they start out when they are mere children (and cost a fortune) before they even reach a level where they are national competitors....
I think the endorsements are a positive way to help out the athletes financially and not necessarily to promote a product.
I've always said the alpine sports are the most expensive of all and only a very small demographic can afford to even participate on a recreational level.
Looking at how basketball and baseball are available to virtually every kid in this country, just imagine what kind of alpine competitors we could develope if skiing were as readily and financially available.........
As a side note, both the Swiss and Austrians make skiing part of their grade school and high school gym programs.........
There’s a lot of tax planning when you’re a self employed individual.
My sister, for example, is an author. In the years where she gets an advance from her publisher, she’ll buy the new office equipment which she needs.
The athletes are the same. They’ll buy necessary equipment in 2014 to offset the prizes received.
Anyone that wins a medal should just vacation for 18 months before coming home, tax free.
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