Taxing each medal earn? What?1

[gymgal]

I just heard about this. Medals are valued at $25k for each gold. $15k for each silver.... What is up that? Only in America....

 

[flips123]

The medals are valued at something but my understanding is that each medal winner receives some prize money. Gold:$25,000 Silver:$15,000 and Bronze:$10,000. These earnings are taxed ALOT though, like the gold is taxed almost $9,000 of the earnings. Just think about how much Phelps made! Another question, does accepting this money screw up NCAA eligibility? I mean it is accepting money for your sport, or could it be labelled as "prize money"?

 

[Onodi92]

Good question. Should be because it is. Who knoww.

 

[ALgymMom]

I heard this on the radio this morning, they also said we were the only country to tax our athletes... What a shame!!

 

[gymgal]

Ok, taxing the prize money makes more sense. I thought they were putting memorabilia value on the actual medals. Still 35% tax on the prize money seems really excessive Why wouldn't it be just whatever their regular tax rate is? Unless of course they win so many medals it puts them into a new bracket...

On researching prize money - the athlete may only accept the amount that equals that expenses for that particular event and the money must come directly from the event coordinators (not outside sponsors). I'm not sure if the Olympics fall into this our not. The prize money comes from the Olympic committee. And what constitutes expenses? coach expenses that the gymnasts pays for? That would certainly take a lot of money for sports like gymnastics....

 

[iwannacoach]

If USAG paid for each athletes travel and provided per diem, they may have a claim to the prize money. If that's the case, I would think they'll provide the prize money to the athlete as a training stipend in a manner consistent with NCAA policy.

As far as the medal's value for their content of gold, silver, and bronze......I heard the gold is worth about $625.00 and the silver about $11.00.......no mention of the bronze. I can't believe the IRS would place a "collector's" value on the medals, as it wuld vary by individual athlete, sport, and circumstance. Consider the value of Michael Phelp's 19th medal in swimming as a once in a lifetime opportunity to aquire, and that's only if he'd sell it or leave it to someboy upon his passing who would sell it.

Compare the Phelp's medal to one from......let's say badminton......I don't know too many people who would care to own a badminton gold medal for any other reason than it's olympic allure.........and that $625.00 worth of gold.

 

[gymgal]

If USAG paid for each athletes travel and provided per diem, they may have a claim to the prize money. If that's the case, I would think they'll provide the prize money to the athlete as a training stipend in a manner consistent with NCAA policy.

As far as the medal's value for their content of gold, silver, and bronze......I heard the gold is worth about $625.00 and the silver about $11.00.......no mention of the bronze. I can't believe the IRS would place a "collector's" value on the medals, as it wuld vary by individual athlete, sport, and circumstance. Consider the value of Michael Phelp's 19th medal in swimming as a once in a lifetime opportunity to aquire, and that's only if he'd sell it or leave it to someboy upon his passing who would sell it.

Compare the Phelp's medal to one from......let's say badminton......I don't know too many people who would care to own a badminton for any other reason than it's olyimpic allure.........

Never thought of USA paying for the athletes. You have a point there....

No, they are not putting a collector's value on them. That's what I thought initially (I should know better than to trust dh without double checking the facts LOL). But they are going by the true metal value of each medal, which is the $635 at the most). And then the prize money.

Just a side question - are the olympic medals labeled for their events? I thought they were all the same but I have never really looked closely

 

[maryRS]

It's the prize money being taxed. But in most of these cases, the athletes have enough expenses to claim against the "winnings" that it shouldn't really amount to any income being taxed.

I'm not sure what I think about it. I mean prize money is taxable and that is what they are getting. I'm actually more surprised that they get money with/for each medal. I never knew that!

I just heard about this. Medals are valued at $25k for each gold. $15k for each silver.... What is up that? Only in America....

 

[Faith]

Just a side question - are the olympic medals labeled for their events? I thought they were all the same but I have never really looked closely

They are engraved around the side with the event. So same front and back.

 

[Aussie_coach]

Taxing prize money? I hear that you even tax lotto winnings in the USA, that must really eat into the prize money.

 

[gymgal]

Taxing prize money? I hear that you even tax lotto winnings in the USA, that must really eat into the prize money.

roughly 50% and it's paid up front, before you get the money... That includes state taxes as well. And if you take the money in a lump sum, you get less than the stated amount (which is figured at 20 year pay-out with time for investment income).

 

[Moxiegrl83]

We tax everything here. We get one weekend tax free for back-to-school supplies, but that's about it. There are always loopholes, but the average family pays taxes on just about everything. There are some food items that aren't taxed too, but if it's processed food, you pay the 7%.

 

[Aussie_coach]

roughly 50% and it's paid up front, before you get the money... That includes state taxes as well. And if you take the money in a lump sum, you get less than the stated amount (which is figured at 20 year pay-out with time for investment income).

Wo, 50% the lotto must make governments rich, we don't have any taxes on prize money or lotto winnings in Australia.

 

[Pineapple_Lump]

The government probably should take it, most 'winners' blow the money within five years. The government may as well take a cut and pretend to use it for something positive.

 

[gymgal]

Wo, 50% the lotto must make governments rich, we don't have any taxes on prize money or lotto winnings in Australia.

Most states have the money earmarked for specific reasons. It helps to sell the tickets "well, at least my money is going to ___". Example - in NC, a large portion of the lottery money goes to education - supposedly. Apparently most of it never makes it to the actual schools but goes to a lot of administration. Personally, I think if they are going to earmark it to something, it should be more specific - goes to classroom supplies or to improve computer/science labs, etc.

 

[gym law mom]

A bill was introduced by Senator Rubio to exempt Olympic medal winners from any taxes.

 

[txgymfan]

I hope they exmempt passes for taxes on their winnings from the Olympics. Go ahead and tax their endorsements.
Now, Mod hat on, I will warn me amd the rest of us to stay away from talking politics.


The event finals start tomorrow, I'll start a new thread. Go McKayla!

 

[Aussie_coach]

The government probably should take it, most 'winners' blow the money within five years. The government may as well take a cut and pretend to use it for something positive.

The government probably blows it in 5 minutes.

 

[Moxiegrl83]

^^ More like the government has is spent before they even get it.

 

[txgymfan]

Lets stay on the topic of rewards for medals. This is going into the topic of politics and there is only one thread where we discuss that.