Win Olympic Gold, Pay the IRS.

 

 

 

 

 

 

 

 

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

We crunched the numbers and have gone through the fine print to find out what the US Olympians will have to cough up to the IRS should they be lucky enough to win any medals in London.

Even by the standards of the US government, the numbers are insane.

For instance: Americans who win bronze will pay a $2 tax on the medal itself. But the bronze comes with a modest prize—$10,000 as an honorarium for devoting your entire life to being the third best athlete on the planet in your chosen discipline. And the IRS will take $3,500 of that, thank you very much.

  Medal tax Prie tax Total tax Burden
Gold

$236

$8,750

$8,986

Silver

$135

$5,250

$5,385

Bronze

$2

$3,500

$3.50

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

Silver medalists will owe $5,385. You win a gold? Timothy Geithner will be standing there with his hand out for $8,986.

So swimmer Missy Franklin—who’s a high school student—is already on the hook for almost $14,000. By the time she’s done in the pool, her tab could be much higher. (That is, unless she has to decline the prize money to placate the NCAA—the only organization in America whose nuttiness rivals the IRS.)

NOTE: The real twist of the knife is that most other Olympians won’t pay any taxes on their medals because America is one of only a handful of countries which taxes “worldwide” prize income earned overseas.

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

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One thought on “Win Olympic Gold, Pay the IRS.

  1. Pingback: Go for the Gold! (Pay the IRS.) « RubinoWorld

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