I don't want to google this because I am being super careful about not seeing any Olympics spoilers...
My morning radio show and The View both talked about athletes being awarded money for winning medals at the Olympics. I guess there was some questioning about athletes having to pay taxes on the money. I don't really care about that. Here's my question - where does the money come from? Does the government give the athletes the money?
it's only the money that is received for them. The article I read stated it that way as in "Tax for a gold would be x amount, for a Silver x amount.. " but they were referring to the money received for a gold, money received for a silver... it specifically stated "the medals themselves are not taxed, but the prize money they receive for winning them."
Personally, I think giving money takes away the whole spirit of the game. I was upset with they added basketball and baseball to the games, and took away the "amateur status" ruling (before that no professional - anyone who had ever received compensation because of the sport - was allowed to compete). I think it just turned the whole thing into a big expensive sporting event with professional athletes, rather than the awesome competition of amateurs that it had been.
Isn't it similar to how if you win the lottery, or money/prizes on a game show you get taxed on the amount? It's treated like income. And if you're winning (earning) thousands of dollars as a prize that accompanies your Olympic medal, that's income.
on the morning radio show I listen to and one of the hosts thinks they should do away with the tax.
It's not like it's coming out of their pocket. It's not like they are getting taxed on the gold medal and have to come up with the money. They are getting taxed on money they won. And I don't see anything wrong with that.
I agree that they should be taxed on the money. Like platypus said, it's kind of like bonus money. Heck, even if it is $9,000, I would take $16,000. I thought I heard that the taxes depended on which tax bracket you fell into...
I still am wondering where the money comes from though. Sponsors?
They are taxed on the actual medal or just the money they receive because they got a medal?
I think it may be both?
Of course, I read (after someone dented theirs in the shower) that it only costs the IOC something like $5 worth of bronze to make another bronze medal, so I'm not sure how much tax they'll get out of that. Though, I bet gold and silver are different.
Now once they have made it they I am sure get a lot of endorsements.
Unless they decide to keep their NCAA eligibility and turn down endorsements like Missy Franklin.
Wow that means that Michael Phelps got paid close to $200,000 or more in 2008 and will receive a good amount for this one. Of course he is probably being well compensated for those subway commercials as well.