Olympians have to pay taxes on prizes given to them by the US government.

Discussion in 'Politics' started by tererun, Aug 3, 2012.

  1. tererun
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    tererun BANNED

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    I know we have heard this crazy story that winning olympians have to pay taxes on a reward given to them supposedly by the international olympics for winning. However, this is not true. The olympics does not give out cash rewards for winning. Being an ameteur event that might defeat the purpose. Anyway, this doesn't stop countries from paying rewards to their winning olympians. Where does this money come from in the US? It comes from the US olympic committee. Most of the funding for the organization comes from private donations. These rewards are not required by the olympics and are a part of the incentive programs offered to athletes who win in the olympics. In other words the olypics only gives out the medals for winning.

    On top of this some winning olympians may receive endorsements after their wins by for profit companies. All of this money is considered income by the government and is taxable. Though just winning 9 grand for a gold does not put you in the range of paying taxes in the US. Without other income you would be considered to be maing too little by the IRS to pay taxes, and would not need to file tax returns on that money. Since the money is a one time award you would also be eligible for welfare programs in all except for the month you received the award, though I doubt many people who are olympic athletes are not making money in other ways.

    One must also note that this 9k is also subject to deductions based on expenses an athlete would incur in training and travel for the olympics, and it is highly unlikely that they couldn't file deductions that would make the entire sum tax free based on US tax code. It also should be noted that the US does spend a large amount of tax money on training facilities for olympians and programs that do help them in their goals, but this prize money does seem to come from private donations to the non-profit committee.

    So since this is not a reward from the olympics, and would be considered income based on US tax regulations it only seems fair that the olympians pay money on their winnings and income based on their sport as any athlete in the US does. no one is saying the winners of the world series, NBA finals, or superbowl should be exempt from paying taxes on their income, along with the many other sports that offer cash awards for their athletes in competition. So yes, as long as we tax victorious athletes for their jobs as athletes, and the income they mae being a part of the american financial system which offers up what is often insane amounts of money for it's victorious athletes, it only seems fair that olympic athletes also pay taxes on their US winning which they would not get if they were not in the US.

    If you wish to read more on this you can start in these places and go on:
    snopes.com: U.S. Gold Medal Winners Pay $9,000 in Taxes?
    United States Olympic Committee - Wikipedia, the free encyclopedia

    They are referenced and allow you to move on to more detailed information as you wish.

    I added this to bring a little truth to a argument that seems full of bullshit and to start a topic that actually addresses the real issues of olympic and other athletes who pay taxes on their jobs and income here in the US.
     
  2. buckeye45_73
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    buckeye45_73 Lakhota's my *****

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    I dont care if they pay taxes on endorsements, but to ding them for winning medals seems rediculous. They are representing us in a competition and to tax them for a medal is wrong.I guess it's part of the participation trophy crowd that hates winners....Tax em all you want on endorsements, but dont tax them for winning
     
  3. uscitizen
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    uscitizen Senior Member

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    How about the winners in the stock market?
    Life is all about winning and losing.
     
  4. Quantum Windbag
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    Quantum Windbag Gold Member

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    Damn, you are stupid.

    The International Olympic Committee is not the US government, they are the ones that hand out the medals. The United States Olympic Committee is not the US government, they are the ones that give out the cash prizes. The USOC gets all of its support from private donations, not the US government. Those prizes are taxed by the US government.

    As a side note, the Olympics gave up the pretense of being about amateur athletics a few years ago, which explains why NBA players are currently playing on most of the basketball teams in the Summer Olympic Games,
     
  5. Charles_Main
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    Charles_Main AR15 Owner

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    Last time I checked the Prizes are not given to them by the US government, they come from the IOC.

    They only have to pay Taxes on the Cash portion of the Prize. Why do you feel they should not have to?

    You have the Facts all wrong here.
     
  6. Charles_Main
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    Charles_Main AR15 Owner

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    OMG man the Tax is not on the Medal.
     
  7. Inthemiddle
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    Inthemiddle BANNED

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    Yes, paying taxes on income is clearly wrong, and nobody should have to do it.
     
  8. uscitizen
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    uscitizen Senior Member

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    Several of those poor struggling opympians have been getting 6 figure salarys from endorsements.
     
  9. buckeye45_73
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    buckeye45_73 Lakhota's my *****

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    bingo!
     
  10. CaféAuLait
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    CaféAuLait This Space for Rent

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    I have no problem with them paying taxes on the monetary prize AS LONG as they are able to deduct any expenses, such as coaching, training costs, uniform costs, medical costs, etc, first.
     

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