GoFuckYourself.com - Adult Webmaster Forum - View Single Post - USA will tax it's athletes for winning at the Olympics...

Due · 08-01-2012, 03:36 PM

Quote:

Originally Posted by sperbonzo

http://www.atr.org/win-olympic-gold-pay-irs-a7091

Win Olympic Gold, Pay the IRS
U.S. Olympic medal winners will owe up to $9,000 to the IRS.

WASHINGTON, D.C. ? While 529 hardworking athletes proudly represent the United States in the 2012 Olympics, any medals and money they earn wearing red, white and blue will be taxed by the IRS. According to research done by the Americans for Tax Reform Foundation, U.S. Olympic athletes are liable to pay income tax on medals earned and prizes received at the London games.

American medalists face a top income tax rate of 35 percent. Under U.S. tax law, they must add the value of their Olympic medals and prizes to their taxable income. It is therefore easy to calculate the tax bite on Olympic glory.

At today?s commodity prices, the value of a gold medal is about $675. A silver medal is worth about $385 while a bronze medal is worth under $5.

There are also prizes that accompany each medal: $25,000 for gold, $15,000 for silver, and $10,000 for bronze.

So how much will U.S. Olympic medal winners have to pay in taxes to the IRS?

Medal/////Tax/////Prize Tax/////Total Tax Burden

Gold/////$236/////$8,750//////$8,986

Silver////$135/////$5,250//////$5,385

Bronze///$2///////$3,500//////$3,502

American gold medal winners will pay the IRS up to $8,986. Silver medal winners will pay up to $5,385. Bronze medal winners will pay up to $3,502.

It gets even worse. 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.

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That is incorrect. USA is the only or one of the only countries in the world that tax their citizens on their worldwide income regardless of their country of residence. HOWEVER other countries tax their residence meaning they tax people who have a residence IN THEIR country regardless of where the money is earned. Money earned at the olympics is still taxed everywhere else according to the tax laws in the country they are living in. If a usa citizen is living in germany he will be taxed in germany and usa but receive a tax credit from USA for taxes paid in germany to avoid double taxation.
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