All about Tax

Olympic Medals Taxed, WHAT?! August 2, 2012

Filed under: Uncategorized — taxchick37 @ 3:00 pm

As I am lying in bed the other day listening to Good Morning America, I heard the commentator say Olympians will be taxed close to $9,000 dollars for each gold medal they win.  I jumped up and shouted, “ARE YOU SERIOUS?”  Unfortunately, they were serious and they were also correct – You know sometimes you can’t believe everything you hear.  Further research also indicated that each silver medal would be taxed $5,000 and bronze, $3,500.

Let me back up a bit and explain to you why they are being taxed. When an athlete wins a medal, there is prize money involved.  For a gold medal it’s $25,000, silver – $15,000 and bronze – $10,000.  The IRS recognize these winnings as taxable income – at a rate of 35% – that is at the top of the tax rate!  So not only are they being taxed, but they are also being taxed at the highest rate……As of 12:44 pm on August 2nd, according to Yahoo, the U.S. has 14 gold, 8 silver, and 9 bronze medals.  That calculates out to be well over $200k owed to the IRS.

I know our economy is not at it’s best right now, but come on, these young people have worked their behinds off for four years.  They have sacrificed everything to be the best in their sport.  They went over to London and represented the United States with excellence- and this is how the government says thank you……with a tax bill.

I believe this is wrong on so many levels.  The money they received was earned not won by luck.  It was through hard work and dedication.  Making this money tax exempt would be the least the government could do for a job well done.

Be informed!