OMG!!!! Olympic medalists have to pay a tax!!!!!

[a6m5]

I rather enjoy a #1-no-pickle once in a while, but the place is over-run with right-wing zealots now, proving their point by "supporting" the restaurant. I can't be seen in that.

I hear you, but looks like they are represented by both parties, so who cares!

Unfortunately, I just found out that they don't have one in my State anyway.

 

[Kylehnat]

...the Government isn't taxing you for winning the medal. They are taxing you when you get paid for the winning that medal.

They're also taxing you on the hundreds-of-thousands of dollars you make on endorsements for winning that gold medal. Bastards!

 

[Danoff]

Uhhh...

She just got $25k in income (from her job). After she pays the $6k tax bill, she's got $19k.

...assuming that she made more income from other sources and that the appropriate tax level on the income is about 6/25. In the US, if the athlete has no other sources of income not only will they not pay any tax on $25k of income, but they'll qualify for "earned income" assistance from the government, essentially free money for not making enough money.

Add on the fact that athletes can deduct any and all training, equipment, and travel expenses for competing from that $25k as job-related expenses. I imagine roughly zero tax is paid on that money in the US (unless they have bigtime endorsements as well).

 

[Famine]

Indeed - the example given in post #1 was an unnamed "gold medallist", rather than the suddenly conjured up 15 year old swimmer placed in exactly the same financial circumstances for some reason.

24% income tax sounds about right for $25k extra earnings for a middle income earner, but then that'll end up at practically zero after deductions anyway.

 

[wfooshee]

Yay, voices of reason!!!! As I mentioned several times, the 6k being "paid" is the IRS withholding. Basically the government borrowing interest-free money from the taxpayer under the guise of holding it for you to ensure that you don't come up on tax day with, "But I don't have it. I had to make my car payments." And it came up several times that they'd have a refund coming when they file their returns.

Yet people are still insisting that they're being forced to "pay for their medals." Amazing.

 

[BJBEOSmitty]

New Employees of mine fill out tax paperwork all the time, we hire about 50 per year, maybe more. If a single person wants to claim 8 withholding exemptions (or more) they are free to do so, as it is entirely up to them. Very VERY little will be taken out of their paycheck in Federal Taxes each week, putting the money in their pocket instead of the governments pocket for the year.

Their tax liability for the year does not change however. Nor should it.

 

[Danoff]

New Employees of mine fill out tax paperwork all the time, we hire about 50 per year, maybe more. If a single person wants to claim 8 withholding exemptions (or more) they are free to do so, as it is entirely up to them. Very VERY little will be taken out of their paycheck in Federal Taxes each week, putting the money in their pocket instead of the governments pocket for the year.

Their tax liability for the year does not change however. Nor should it.

They will almost certainly owe a withholding penalty for doing that.

 

[GTsail]

New Employees of mine fill out tax paperwork all the time, we hire about 50 per year, maybe more. If a single person wants to claim 8 withholding exemptions (or more) they are free to do so, as it is entirely up to them...

The IRS penalty for willfully supplying false information on your Form W-4(Employee's withholding allowance certificate) is $500.

The IRS can review an employer's W-4 Forms if they think that the reporting of the withholding allowances is being abused.

Respectfully,
GTsail

 

[Danoff]

Also you pay a penalty if it comes tax time and you haven't withheld a certain percentage of your income.

 

[Joel]

The IRS penalty for willfully supplying false information on your Form W-4(Employee's withholding allowance certificate) is $500.

The IRS can review an employer's W-4 Forms if they think that the reporting of the withholding allowances is being abused.

Respectfully,
GTsail

Also you pay a penalty if it comes tax time and you haven't withheld a certain percentage of your income.

This stuff is hands down what I am least excited about for adulthood.

 

[BJBEOSmitty]

They will almost certainly owe a withholding penalty for doing that.

No, not almost certainly - certainly! At least they will certainly owe tax.

The IRS penalty for willfully supplying false information on your Form W-4(Employee's withholding allowance certificate) is $500.

The IRS can review an employer's W-4 Forms if they think that the reporting of the withholding allowances is being abused.

Respectfully,
GTsail

Well, it happens. Bottom line is they will owe tax come tax return time.

 

[wfooshee]

No, not almost certainly - certainly! At least they will certainly owe tax.

He's not talking about they will owe tax, despite not having any withheld.

Americans aren't allowed to hold on to their own money and then cough up the taxes on April 15th. If you somehow fail to have enough withheld from your paycheck, you will have a penalty fee on top of your regular tax that you have to pay.

Oddly enough, you also have such a fee if you set yourself up for excessive withholding, and thus a very large refund.

None of which has jack to do with the perceived, so-called "medal tax."

So, to summarize:

Moron attention-hungry reporter or blogger discovers that the IRS takes a share of the medal-winner's prize money and calls it a tax on the medal.

Uninformed public finishes their Chik-Fil-A sandwiches and rallies behind a cry of "Unfair!!! Abolish!"

Informed entities like snopes.com and myself point out that the withholding is just a normal withholding of income tax from money received by the medal-winner. Everybody pays income tax on their earnings, and that's all this is.

More uninformed persons misunderstand and join the "Unfair!!!! Abolish!!!" bandwagon, probably posting on their phones from Chick-Fil-A.

Kids not old enough to know the rules of taxes post up with "Wait. Whut?"

 

[88FoxBodyFan]

Here's Republican Florida Senator Marco Rubio And President Obama tryin' to snag a few votes from the moronic masses:

http://msn.foxsports.com/olympics/s...t-olympians-from-taxes-on-their-prizes-080612

I would go into a rant about how this country should be worried about more important things, but that's just beating a dead horse at this point.

 

[CAMAROBOY69]

WTF, that doesn't make any sense. You won something so you pay?!

Why? It makes perfect sense. Ask him if he gets a paycheck from a second job, if he has to pay tax on it. A medalist gets $, income, and pays a tax on it.

It's as easy to understand as gravity, or why bacon tastes good, or the greatness of the small of a woman's back.

Yup makes perfect sense. /thread.

 

[Pupik]

Yeah, the level is a penny. Theoretically. But by law here, the folks awarding you the prize don't have to report it to the IRS until it reaches a certain amount. I couldn't tell you where that boundary is, though.

Lottery tickets say "over $599" and I've seen the same at parimutuels, but theoretically, you're supposed to claim anything under that yourself, so winning $599 multiple times does not excuse you from Uncle Sam's toll booth.

Don't forget about all those people who sued Oprah for giving them a free car because they couldn't afford the income tax, or couldn't afford the insurance .

I don't understand, you mean that giving away 250 examples to people who don't earn any income is a bad idea? I mean, just look at the numbers, it's been great for Pontiac...oh, wait.

 

[Tahli462]

WTF, that doesn't make any sense. You won something so you pay?!

Only in Mexico.... wait what?

 

[BJBEOSmitty]

Yup makes perfect sense. /thread.

You win your choice of the following... For providing visual evidence of my previous statement. Well done sir!

Pick one...

Level Tickets
24, 23, 21, 16, 11, 7

Birthday
1967, 1969, 1971

Cars in ticket 0/0/0 form
Speed 12
Ford GT No Stripe

 

[Mr Bean]

Wow! Successful people having to pay tax? Unheard of.

Everyone has to pay it, no matter where you live or how much money you have, same for politicians although as we found out they have ways around it.