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.
#off topic forum
  • 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.
  • If thats legit than that is just ridiculous and a damn shame for both country and athlete!
    • [1] reply
    • 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.
      • [ 1 ] Thanks
  • 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/
    • [1] reply
    • Most medal winners, ESPECIALLY GOLD WINNERS, in the US probably EASILY make $380,000 a year!

      Steve
      • [1] reply
  • 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?)
    • [1] reply
    • 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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    American Olympians taking IRS bill home in addition to medals

    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.