I thought it was 25K. Now I see that congress is trying to pass a law so that those $ will be tax free. I'm sorry...I pay taxes, you pay taxes, the military pay taxes, policemen pay taxes, firemen pay taxes, relief workers pay taxes, doctors who travel to Africa to fight Ebola pay taxes. The smaller, little known athletes can probably deduct their training expenses against the income anyway and not pay much. The Kevin Durants and Kyrie Irvings can, I think, afford the tax. Give 'em a parade.
25k is the standard award, he gets 250K from some wrestling fund that is seperate. He already got 50K last year from the same fund. I agree, don't need to create a seperate section of the tax code for them
This is what I read last night as well and its permissible by the NCAA according to the article I read. I also read that the swimmers have a similar fund supported by private donors that pays them extra money but the amounts are not disclosed...The article did say that Micheal Phelps net worth is currently $50 million, swimming has been good to him.. Personally I think there are the have's and have nots participating in the Olympics for the United States. In reading I came across an article where one of the woman high jumpers got sick once she arrived (Thought is the water she drank) and the result was she could not compete and lost an estimated $60,000 between the travel, training and preparation for the Olympics. Her husband was saying he does not know how they are going to recover from the loss...?
They could be moved into the same section of the tax code that scholarship winners and Nobel Prize winners are. Those awards are tax free. If someone spends thousands of hours training to be a world class athlete in sports such as kyaking or cycling it doesn't bother me if they get compensated for medal victories. And I appreciate how some of the pro BB players spend much of their off season time playing for their country. If they get any money for that its little compared to what their usual salary is. It was nice seeing the pros at events like beach volleyball cheering on their fellow Americans.
If they do there will be no popular uproar against them most likely..so it's an easy feel good thing for Congress to do. I didn't know that Nobel Prize money was tax exempt. I sort of figured scholarship money was though I never knew for sure. I wonder if the additional money football players are receiving as the additional costs of going to school that are now allowed is taxable? It's not scholarship money, it's spending money.
Well on further review, Nobel Peace Prize awards are not tax exempt unless the recipient has donated it to a charity. As to the awards to the US Olympians ie 25k for 1st 15k for 2nd and 10k for 3rd, that money is taxable. But since the gold and silver medals are made mostly of silver the athletes have to pay taxes on their medals. To me that just sucks.
So if Hillary Clinton wins the Nobel Peace Prize, and donates the money to her own foundation, she will be making a tax free donation to herself?
They do it all the time. And then they use the Foundation money for first class travel supposedly on "Foundation business." http://www.cnbc.com/2016/08/12/clinton-releases-latest-tax-returns-paid-rate-of-43.html
Gip, I read that the gold medals (silver that is plated with gold) are only worth about $660 apiece, the silver is worth $300, and tha bronze is worth a whopping $4.70. Whether those are income or not is an open question, but the IRS is not likely to go after an athlete for not declaring the "value" of the medals on their income. Maybe I should have declared the value of my chrome trophy for 3rd place net in the "D" flight of the Senior Club Championship.