Achieve Olympic Glory - Now Pay the IRS
U.S. Olympic gold medal winners could owe almost $10,000 to the IRS
As 230 U.S. Olympic athletes gear up to compete in the 2014 Winter Games,
the only thing colder than the slopes at Sochi is the fact that any prizes
awarded by the U.S. Olympic Commission (USOC) will be taxed by the IRS. Many
Americans don't realize that the U.S. taxes income earned abroad, and as
such even the winnings of Olympic athletes are subject to the reach of the
IRS.
The USOC awards prizes to U.S. Olympic medal winners: $25,000 for gold,
$15,000 for silver, and $10,000 for bronze. Relative to each athlete's
income tax bracket, some top earners such as Shaun White could end up paying
over a third (39.6 percent) of their winnings to the IRS.
Additionally, because the U.S. is one of only a handful of developed
countries that tax income earned abroad, it is likely America's competitors
will not be subject to such a tax. Taken together - the tax on Olympic
athletes and the tax on income earned abroad - it can be said the U.S. has
officially "earned the Gold" for having one of the most backwards and
illogical tax codes in the world.
U.S. Tax Rates per Bracket
Max. Tax Liability on Gold Medal Prize of $25,000
Max. Tax Liability on Silver Medal Prize of $15,000
Max. Tax Liability on Bronze Medal Prize of $10,000
39.6%
$9,900
$5,940
$3,960
35%
$8,750
$5,250
$3,500
33%
$8,250
$4,950
$3,300
28%
$7,000
$4,200
$2,800
25%
$6,250
$3,750
$2,500
15%
$3,750
$2,250
$1,500
10%
$2,500
$1,500
$1,000
Americans for Tax Reform has calculated the federal income tax medal winners
could potentially face. It will vary depending on which marginal income tax
bracket the athlete finds himself in for 2014. The amounts below represent
only the federal income tax liability, and do not account for income taxes
owed in most states.
Thé Mulindwas Communication Group
"With Yoweri Museveni and Dr. Kiiza Besigye Uganda is in anarchy"
Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni na Dk. Kiiza Besigye Uganda ni katika machafuko"
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