American Olympians taking IRS bill home in addition to medals

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Report: American Olympians taking IRS bill home in addition to medals - CBSSports

Not only do our Olympic athletes have to pay taxes on their medals and prizes - chances are their competitors on the field will face no such taxation when they get home. Because the U.S. is virtually the only developed nation that taxes "worldwide"income earned overseas by its taxpayers, our Olympic athletes face a competitive disadvantage that has nothing to do with sports.

...current Americans competing in London would owe the IRS $8,986 for winning a gold, $5,385 for a silver and $3,502 for a bronze according to the report.

Swimmer Michael Phelps made history on Tuesday by taking home his 19th medal to become the most decorated athlete at the games in history and has ponied up his fair share of tax money over the years. Using those tax estimates, the Maryland native has paid as much as $132,808 to Uncle Sam so far for his 14 golds and 2 bronze medals earned prior to London. Toss in the three medals he's earned in 2012 and the total bill jumps to $152,564 and counting.
  • Profile picture of the author HeySal
    This is so shameful that I can't believe it. Instead of honoring our best, the world laughs at our tyrants in office. I'd love to see other countries give the funds to our winning athletes to pay the taxes. What a humiliation that would be for our IRS thugs. However - they are so sick in the head with greed that they probably would not even recognize such funding as a major slap in the face.
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  • Profile picture of the author NicktheStein
    If thats legit than that is just ridiculous and a damn shame for both country and athlete!
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    • Profile picture of the author Kay King
      The news reports, though, that appeared yesterday and today - are inaccurate so the numbers you are quoting are fiction. To pay that much for a gold medal win, the athlete would need to be in an income bracket of $400k and above...and most of them aren't.

      You can't extrapolate what Phelps has paid because you don't know - he wasn't wealthy during his first year of competition. You are multiplying an imaginary number. Truth is - the cash awards for Phelps for 8 gold medals prior to this Olympic Games has been $350,000 - and that doesn't count medals other than gold.

      To date, Phelps has earned almost a half million dollars in Olympic medal awards - is there any other sport where you can earn $500k exempt from income taxes? No - this is a media driven story complete with the highest possible numbers given as "fact".

      The reason it is on the news is because a bill has been introduced to make the awards tax-free. Yes, that would be great for the athletes and it will probably pass. That's an odd thing at a time when supposedly taxes must be raised on other less sports-worthy citizens who earn far less.
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  • Politifact points out, however, that athletes can reduce the tax hit by deducting any unreimbursed business expenses (traveling, equipment, etc.) from their bonus. Additionally, the 35 percent tax rate applies to athletes who make at least $380,000 a year.

    http://www.politifact.com/truth-o-me...-owe-9000-irs/
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    • Profile picture of the author seasoned
      Originally Posted by MoneyMagnetMagnate View Post

      Politifact points out, however, that athletes can reduce the tax hit by deducting any unreimbursed business expenses (traveling, equipment, etc.) from their bonus. Additionally, the 35 percent tax rate applies to athletes who make at least $380,000 a year.

      http://www.politifact.com/truth-o-me...-owe-9000-irs/
      Most medal winners, ESPECIALLY GOLD WINNERS, in the US probably EASILY make $380,000 a year!

      Steve
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      • Profile picture of the author Kurt
        Originally Posted by seasoned View Post

        Most medal winners, ESPECIALLY GOLD WINNERS, in the US probably EASILY make $380,000 a year!

        Steve
        Please post a link to the source of your info.
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        • Profile picture of the author seasoned
          Originally Posted by Kurt View Post

          Please post a link to the source of your info.
          You REALLY don't think they can get endorsement deals, write books, and the like? Some go on for decades.

          Steve
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          • Profile picture of the author Kurt
            Originally Posted by seasoned View Post

            You REALLY don't think they can get endorsement deals, write books, and the like? Some go on for decades.

            Steve
            I didn't say that. Some do.

            Now, please post a source for your stats where you claim "most" do "easily". Or are you just making things up again?
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            • Profile picture of the author Kay King
              The top athletes get deals - AFTER they win for the most part.

              Gabby Douglas will soon appear on Corn Flakes boxes - but that was announced today AFTER her gold medal.

              They pay taxes on the endorsement money like anyone would - the question is whether they should pay on the prize money that goes with winning or on the value of the medals themselves.
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              • Profile picture of the author Kurt
                Originally Posted by Kay King View Post

                The top athletes get deals - AFTER they win for the most part.

                Gabby Douglas will soon appear on Corn Flakes boxes - but that was announced today AFTER her gold medal.

                They pay taxes on the endorsement money like anyone would - the question is whether they should pay on the prize money that goes with winning or on the value of the medals themselves.
                Yep, and Michael Phelps will do well, too. But who else?

                The US Men's basketball team will all make millions, but would have without playing in the Olympics.

                And I doubt even Misty May and Kerrie Walsh, who are (probably) on their way to their 3rd gold in beach volley ball make $300,000 a year from endorsements and playing on tour, as seasoned claims.

                IMO, the medals should be tax-free as the athletes are serving their country and are used for political purposes. But I asked seasoned two other questions to back up his statements, so there's more than one question that needs to be answered.
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              • Profile picture of the author seasoned
                Originally Posted by Kay King View Post

                The top athletes get deals - AFTER they win for the most part.

                Gabby Douglas will soon appear on Corn Flakes boxes - but that was announced today AFTER her gold medal.

                They pay taxes on the endorsement money like anyone would - the question is whether they should pay on the prize money that goes with winning or on the value of the medals themselves.
                Gee, are you taking what I said as the endorsements come first, THEN the gold medals? That is NOT what I meant AT ALL! I meant AFTER!

                Steve
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                • Profile picture of the author Kay King
                  I agree the tax should not be charged - I disagree with the basic "news report" because it is sensationalized . Clearly not all our Olympic athletes are in a 30% tax bracket but that's what the number list.

                  No, Steve, I meant they would pay on money paid for endorsements they get AFTER they win the medals and that's fair as that is regular income. I think the Games themselves should not be considered "taxable income".
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                  • Profile picture of the author seasoned
                    Originally Posted by Kay King View Post

                    I agree the tax should not be charged - I disagree with the basic "news report" because it is sensationalized . Clearly not all our Olympic athletes are in a 30% tax bracket but that's what the number list.

                    No, Steve, I meant they would pay on money paid for endorsements they get AFTER they win the medals and that's fair as that is regular income. I think the Games themselves should not be considered "taxable income".
                    Yeah, but they passed an interesting law decades ago. Let's say I gave a company $1000 as a donation. I gave them $1000, RIGHT? Well, if I get $30 worth of tapes that they consider worth $500, they can say I donated $500, and I get HALF the deduction EVEN if I never wanted the tapes. Maybe they should make a way to make taxes fair for all.

                    HECK, is $30,000 more than $3000? NOPE! If you make $3000 in harlem, that may be a GREAT income, and go far. If you make $30,000 in Washington DC, it may be a rather low amount.

                    Steve
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            • Profile picture of the author seasoned
              Originally Posted by Kurt View Post

              I didn't say that. Some do.

              Now, please post a source for your stats where you claim "most" do "easily". Or are you just making things up again?
              Well, I can't convince you, but I DID say(as you quoted) "probably"!!!!! You guys LOVE to say I am making things up, etc... What should I do? Go through EVERY medal winner in the US, and tally them up, audt their accounts and tally that and if one makes a penny to little, or whatever... You say "SEE"... NO THANKS!

              Steve
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              • Profile picture of the author Kurt
                Originally Posted by seasoned View Post

                Well, I can't convince you, but I DID say(as you quoted) "probably"!!!!! You guys LOVE to say I am making things up, etc... What should I do? Go through EVERY medal winner in the US, and tally them up, audt their accounts and tally that and if one makes a penny to little, or whatever... You say "SEE"... NO THANKS!

                Steve
                You can convince me with some actual proof. I am willing to bet I know Olympic athletes better than you do, and I doubt many of them make enough from endorsements to be in the $300,000 a year income bracket.

                Of course, if you have some actual FACTS and not blind guesses, I'd be willing to change my opinion based on those facts. But I'm not willing to change my mind based on the opinion of someone with less knowledge on a subject than I have.

                To answer your question "What should I do?"...You should use facts as much as possible to form your opinion and not just spout about things you have no knowledge about.

                As you just admitted, you haven't done any research, yet you still have formed an opinion based on simply guessing that ASSUMES Olympians make alot of money.
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                • Profile picture of the author Kay King
                  A little research here:

                  How much do Olympic athletes earn?

                  From another site devoted to the Olympics - a Triathlon competitor wrote in an article:

                  An Olympic athlete spends an average of 8 hours a day, seven days a week training in preparation for the Games, with an average $19,000 salary
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  • I hope the 'You" you refer to is CBS Sports, and not "I" as I relayed parts of the cited story, and didn't alter any of the figures cited...("I" now being the wounded messenger )

    The Politico piece above cites and confirms your concern that the figures are mostly false, as not many athletes win at near the scope of a Michael Phelps.

    The full story mentions there is currently a bill introduced by Sen. Mark Rubio to alleviate this tax burden, and given the source, we could assume figures have been escalated...

    I agree there should be exemptions for these awards - they were not won by being on "Wheel of Fortune', they were awarded to dedicated athletes representing their country - but I agree, the introduction of this bill at this time was strictly meant to stir the media teapot. (or is it teapot media?)
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    • Profile picture of the author Kay King
      I meant the inclusive, group "you" - not personal reference.

      I guess I always look for the "buts" in these stories because they are sensationalized to make them seem more critical or damaging than they are and I've come to expect that.

      Of more concern to me is the plight of livestock farmers who were cut out of the latest farm bill subsidies and are now facing drought conditions that make it hard to find food for their stock. Truth is - for both issues nothing will be done for a while as lawmakers left on a 30 day vacation.:rolleyes:
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