Federal taxes due on USA Olympic Medal Winners:

[eyer]

Gold = $8,986

Silver = $5,385

Bronze = $3,502

Dig this:

The Gold medal-winning USA men owe the federal government a total of $63,000 in tax for winning the 4X200 freestyle event...

Rubio bill eliminates federal tax on Olympic medals

Sen. Marco Rubio introduced a bill Wednesday to eliminate the federal government’s tax on Olympic medals, saying the levy amounted to yet another way the government tries to punish those who succeed.

...ATR (Americans for Tax Reform), the group that crunched the numbers, said it’s unlikely any of America’s competition will face the same taxes because the U.S. “is virtually the only developed nation that taxes ‘worldwide’ income earned overseas by its taxpayers.”

Full piece here:

http://www.washingtontimes.com/news/2012/aug/1/rubio-bill-eliminates-federal-tax-olympic-medals/

 

[Leslie22]

Boo hoo.

 

[mercury14]

So athletes shouldn't have to pay tax on the income they earn? Why not?

 

[warrior queen]

Australians working overseas pay taxes in the country they work in, and then get hit again when they come home.

 

[BotanyBoy]

So athletes shouldn't have to pay tax on the income they earn? Why not?

I'm not saying they shouldn't have to pay on their income...but their medals? Come the fuck on....that's digging pretty fucking deep into the bullshit bucket as a reason to tax someone. The medal may have value...but it's not an income, you can't spend it....you can't use it for anything...it's a symbolic chunk of metal.

 

[mercury14]

Australians working overseas pay taxes in the country they work in, and then get hit again when they come home.

*Skeptical*

I'm friends with a few Aussies working here in the US temporarily and none have ever mentioned this. I'll ask them about it tomorrow night at one of their birthday parties.

I miss Victoria Bitter.

 

[mercury14]

I'm not saying they shouldn't have to pay on their income...but their medals? Come the fuck on....that's digging pretty fucking deep into the bullshit bucket as a reason to tax someone.

They're not paying taxes on their medals. Gold medal winners get $25k in cash. They're getting taxed on cash income just like you and I do.

 

[BotanyBoy]

They're not paying taxes on their medals. Gold medal winners get $25k in cash. They're getting taxed on cash income just like you and I do.

Oh that's cool....I was under the impression that they were taxed on the "value" of the medal, which I would have argued as bullshit tax. But cash income? yea...seems legit.

 

[warrior queen]

*Skeptical*

I'm friends with a few Aussies working here in the US temporarily and none have ever mentioned this. I'll ask them about it tomorrow night at one of their birthday parties.

I miss Victoria Bitter.

You can't get VB where you are?
My man worked overseas for a while.... like a lot of maritime Masters, he has found he's better off financially staying here and paying only our tax.

 

[ChinaBandit]

If you are living, and legally working, overseas as an Ex-Pat you are no doubt paying income tax to your host nation. You no doubt have a work permit, etc,.

A US citizen will get a standard Ex-Pat deduction based on income, a housing deduction and of course credit for all foreign tax paid. In addition, other standard deductions such as dependents and alimony paid count too. You definitely need to file a US return though even if you end up having nothing to owe to Uncle Sam.

Importantly, the United States has a "no double taxation" treaty with most countries.

Moreover, if you work for a decent company they will probably "make you whole." What does that mean exactly? Well, in the PRC my tax rate is 45%. Consequently, I pay far more here than I would ever pay in the US. So, my company compensates me in a way that ensures the difference is made up thus I pay no more here at the end-of-the-day than I would in America. Thanks to this approach, I am not personally penalized because of the PRC's ridiculous rate on foreign workers.

Note: There is at least one exception. You do not have to pay income tax (no one does) in the United Arab Emirates, provided your foreign company is properly registered. We rented a trailer in the desert (literally) of Sharjah a tax free zone.

 

[mercury14]

If you are living, and legally working, overseas as an Ex-Pat you are no doubt paying income tax to your host nation. You no doubt have a work permit, etc,.

A US citizen will get a standard Ex-Pat deduction based on income, a housing deduction and of course credit for all foreign tax paid. In addition, other standard deductions such as dependents and alimony paid count too. You definitely need to file a US return though even if you end up having nothing to owe to Uncle Sam.

Importantly, the United States has a "no double taxation" treaty with most countries.

Moreover, if you work for a decent company they will probably "make you whole." What does that mean exactly? Well, in the PRC my tax rate is 45%. Consequently, I pay far more here than I would ever pay in the US. So, my company compensates me in a way that ensures the difference is made up thus I pay no more here at the end-of-the-day than I would in America. Thanks to this approach, I am not personally penalized because of the PRC's ridiculous rate on foreign workers.

Note: There is at least one exception. You do not have to pay income tax (no one does) in the United Arab Emirates, provided your foreign company is properly registered. We rented a trailer in the desert (literally) of Sharjah a tax free zone.

I can't imagine Australia doesn't have the same "no double taxation" laws. Heaps of Aussies work overseas and I cant imagine they're doing so at a net 70% tax rate.

You can't get VB where you are?

No, they don't export it to the US or any other country I've been to. Only crap Foster's.

 

[warrior queen]

I can't imagine Australia doesn't have the same "no double taxation" laws. Heaps of Aussies work overseas and I cant imagine they're doing so at a net 70% tax rate.

When on a higher income, you pay a tax on amounts over a certain value you bring back into Oz.

 

[mercury14]

When on a higher income, you pay a tax on amounts over a certain value you bring back into Oz.

If the overseas rate is lower than the Aussie rate I imagine you pay the difference in Aussie taxes.

 

[warrior queen]

If the overseas rate is lower than the Aussie rate I imagine you pay the difference in Aussie taxes.

I don't know all the ins and outs, but I do know that on the same income, he now keeps more in his pocket than he did when working o'seas.
To the tune of about $19,000/yr.

 

[ChinaBandit]

I have an Aussi employee in Bangkok.

We pay him in US dollars as a "contract employee."

He continues to get a business visa without complication. However, I don't think he's paying ANY tax to the Thai government and I know he is not paying anything to Oz now. I don't think he ever has any intention of paying Oz, even if he goes back to Melbourne.

Can't get VB in the states? Fucked! I can get Boags, Cascade, Toohey, VB in Beijing no problem.

 

[dolf]

i always thought that tax thing was crazy. even if you're out of the country, still paying taxes for the honour of being born american? the first time i heard it i thought the person must have got it wrong.

 

[kbate]

i always thought that tax thing was crazy. even if you're out of the country, still paying taxes for the honour of being born american? the first time i heard it i thought the person must have got it wrong.

It is a complicated tax scheme. But for those Americans who live abroad and work abroad, there is a large exclusion available. The requirements for the exclusion do not allow athletes on a two week stint to qualify, but it does cover those who live and work in another country.

Currently it is $95,000 Plus some housing allowances.

 

[dolf]

It is a complicated tax scheme. But for those Americans who live abroad and work abroad, there is a large exclusion available. The requirements for the exclusion do not allow athletes on a two week stint to qualify, but it does cover those who live and work in another country.

Currently it is $95,000 Plus some housing allowances.

*fap*
it's hot when you educate me.

 

[ChinaBandit]

The maximum US Foreign Earned Income Exclusion (less housing allowance) for 2011 was $92,900.

One has to be out of the US, based in the country of assignment (i.e. tax home) for no less than 330 days.

 

[4est_4est_Gump]

The maximum US Foreign Earned Income Exclusion (less housing allowance) for 2011 was $92,900.

One has to be out of the US, based in the country of assignment (i.e. tax home) for no less than 330 days.

Hell, a lot of our "amateur" athletes routinely receive fines higher than that for their off-court antics...


*snicker*

 

[kbate]

*fap*
it's hot when you educate me.

I was under this law for a few years and paid no taxes to the U.S of A.

 

[ChinaBandit]

I was under this law for a few years and paid no taxes to the U.S of A.

I failed to file for a few years.

Bad idea, I did owe some US tax over the period and had a lien placed on my bank account and on my wages from my employer. It was a bit unpleasant to resolve, no less the interest and penalty. It also messes up spousal immigration visas if you do not have all tax shit in a bag. Live and learn!

 

[Liar]

Oh that's cool....I was under the impression that they were taxed on the "value" of the medal, which I would have argued as bullshit tax. But cash income? yea...seems legit.

The metal value of the medal is not that much anyway.

Not much real gold in Olympic medal
The last time solid gold medals were awarded in the games was in 1912.
By Kim Peterson Mon 4:23 PM

If the Olympic gold medal was made of real gold, it would be worth a small fortune.

This year's medals weigh between 375 and 400 grams, CoinWeek reports. They are the largest and heaviest medals in Olympic history. If the gold medal contained 400 grams of actual gold, it would be worth nearly $21,000 (using a spot gold price of $52.20 a gram).

But it's been 100 years since the Olympic games gave solid gold medals to victorious athletes. Now, the gold medal is a mere 1.34% gold and 92.5% silver, with the rest made up of copper, according to Dillon Gage, one of the country's largest precious metals dealers.

The silver medal is truer to form, containing 92.5% silver and the rest copper. The bronze medal is 97% copper, 2.5% zinc and 0.5% tin.

So how much are these medals worth? Using some back-of-the-envelope​ calculations, the gold medal is worth around $650. The silver medal is worth about $330 and the bronze medal is worth just $3.

I guess a bona fide olympic medal has collector's value though. I know a Finnish skier sold his 2 gold and 1 silver for a charity auction a few years ago, and got about half a mil.

 

[chillywilly2]

Is this actually a "Medal Tax" that you pay a flat rate on as Eyer listed or is it an actual "Income Tax" where the rate would be based on income, like higher income is at a higher rate.

Do you get to clain deductions for costs associated with winning this medal?

 

[tactful]

Oh that's cool....I was under the impression that they were taxed on the "value" of the medal, which I would have argued as bullshit tax. But cash income? yea...seems legit.

The value of said Metals is about, a buck three eighty, ribbon is extra.