Be the Best - Pay the IRS!

@Linkat,

No, members of team sports each get a medal and the appropriate bonus amount, same as individual competitors.

Last month Forbes had a good article outlining how it works here and in other countries -- Italy pays their athletes the most ($182,000+ for gold) and GB pays theirs none. Russia, I think, pays their gold medal winners about twice what we do. I can't remember if they mentioned China.

There's been some grumbling by our athletes over the amounts -- it's been the same for at least a decade (no keeping up with inflation). Of course, they're aware of how much the USOC rakes in off their names and that many of the USOC's execs (88 according to Forbes) make $100K+ in annual salaries.

1 Reply

@nqyringmind,

I don't understand that - unless they are being stupid with their money and have sucky accountants - I mean an accountant would make sure they sack away money for their taxes (and to pay them) and advise them where to put their money for the future.

So unless they pull a Derek Sanderson, they should have more than enough to pay taxes.

And those that don't get huge endorsements - their expenses would exceed what they take in for the $25k so there would be no owed taxes.

They may, on the other hand, need to sell their medal to pay all the debts they incurred...but not due to taxes.

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@Irishk,

I figured as much, but would have found it funny if they had to split the $25k.

They do also get a small salary once they make the olympic team, but it hardly enough to live off. I was reading about one of the women weightlifters and how she had to live extremely frugal once she made the olympic team due to low salary.

I'm worried more about the financial burden on those athletes that make the olympic team, but don't medal and/or are in a sport so under the radar they end up being up to their ears in debt just to fullfill this life long dream - and even forget about those that don't make the teams.

1 Reply

@nqyringmind,

Quote:

We want these athletes to be at peak performance every four years. For some, expenses for travel, equipment...etc outweigh the small stipend they receive for winning a medal anyway.

Which means they won't owe taxes on the winnings because they have all those write offs.

You don't seem to understand the tax question at all.

1 Reply

@nqyringmind,

nqyringmind wrote:

In the real world, after the dust settles and the cheering stops, some American Olympians will likely have to pawn their medals to pay their taxes.

I don't think you know what the real world is like.
In the real world, an Olympian will just go on a speaking tour or do endorsements and make a lot more money than they had to pay in taxes on $25,000.

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@parados,

Quote:

You don't seem to understand the tax question at all.

You don't seem to understand the point at all!

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@parados,

Quote:

I don't think you know what the real world is like.
In the real world, an Olympian will just go on a speaking tour or do endorsements and make a lot more money than they had to pay in taxes on $25,000

Wow! Really??? Thanks for the enlightenment. For a minute there, I was under the impression that most (especially women) don't get big endorsement deals and make a lot of money.

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@engineer,

We all don't represent our country in the Olympic Games.

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@nqyringmind,

Quote:

And those that don't get huge endorsements - their expenses would exceed what they take in for the $25k so there would be no owed taxes.

What don't you understand about that? Basically some one not getting endorsements will likely not pay taxes on the winnings any way.

And as far as women:
"For U.S. Olympic star Gabrielle Douglas, breakfast is just the start. Her deal to front Kellogg's Corn Flakes boxes is likely to be followed by endorsement deals from major marketers looking to capitalize on America's newest sports star."
http://bottomline.nbcnews.com/_news/2012/08/05/13130315-gabby-douglas-gold-worth-millions-in-endorsement-deals?lite

I think it is more the sport rather than female vs male...unlike professional sports.

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@parados,

parados wrote:

I don't think you know what the real world is like.
In the real world, an Olympian will just go on a speaking tour or do endorsements and make a lot more money than they had to pay in taxes on $25,000.

don't forget the "training camp, operated by Former Olympian X"
they seem to do quite well - don't even have to medal to run one of those camps

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@Linkat,

"I'm worried more about the financial burden on those athletes that make the olympic team, but don't medal and/or are in a sport so under the radar they end up being up to their ears in debt just to fulfill this life long dream - and even forget about those that don't make the teams. "

we should financially support people who decide to be athletes instead of work for a living, especially if they are not good enough to medal or are in an unpopular sport?

sounds very communistic to me...

maybe we should just quit making gods and mufti-millionaires out of our sports "heroes".

1 Reply

@Rockhead,

I'm not suggesting that by any means.

Making a point that why are worry about the ones taking home gold and thinking they should be paying or not paying taxes on it - they can in most cases afford it.

The ones that don't take home a medal on the other hand - don't get nadda. Basically my point was it isn't as much a financial burden to pay taxes as it is to come home with nothing to show for it.

It really is the family's and individual's decision and they need to reap the consequences of their decisions.

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@nqyringmind,

nqyringmind wrote:

Quote:
I don't think you know what the real world is like.
In the real world, an Olympian will just go on a speaking tour or do endorsements and make a lot more money than they had to pay in taxes on $25,000

Wow! Really??? Thanks for the enlightenment. For a minute there, I was under the impression that most (especially women) don't get big endorsement deals and make a lot of money.

The taxes on $25,000 would be only a few thousand. If that was their only income for the year, it would probably be less than a thousand. Even an unknown Olympic gold medalist should be able to arrange some $5,000 speaking engagements talking to enthusiasts in his sport or high school kids.

1 Reply

@parados,

but then he'd be taxed on the $5k and so on and so on.....

maybe we should just get rid of taxes.

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I would rather pay income taxes than have no income at all. That's just me, of course.

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@Linkat,

Quote:

but then he'd be taxed on the $5k and so on and so on.....

maybe we should just get rid of taxes.

sigh

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@Linkat,

Linkat wrote:

but then he'd be taxed on the $5k and so on and so on.....

maybe we should just get rid of taxes.

But only for those the politicians decide are more equal than the rest of us.

0 Replies

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