<p>I don’t think they should be taxed on the value of the medal itself, but any earnings should be taxed just like everyone else. It’s not like they’re losing money - they’re getting a bonus, and paying a portion back in taxes. The taxes will never be more than the value of the bonus. If they don’t want to pay taxes, don’t accept the bonus, really simple!</p>
<p>For the record, athletic scholarships in college are non-taxable to the extent they are used to pay tuitiion and fees (but any portion for room and board and other expenses is taxable). This is no different than any other scholarship or financial aid offered other students, so it’s not a special tax break. And for those without scholarships, there are plenty of other tax breaks out there. That first $4000 you pay toward tuition gets you a tax credit of up to $2500 - fat more than you would pay in taxes on that income. You can deduct a portion of student loan interest when you pay it (and you don’t have to itemize to get it, like you do with mortgage interest). </p>
<p>As it is, these athletes will be paying less tax than the rest of us on these “earnings” because they are not wages, and not subject to Social Security taxes. Since they are not employees, this income would either be considered business income, from which they can deduct expenses, or hobby income, from which they can also deduct expenses if they itemize. In most cases, they probably have enough expenses to wipe out any income, unless they have endorsements - and those with endorsements have enough money they’re not going to worry about taxes on this small amount.</p>
I agree, but it’s conceivable that it will count as a hobby instead of a business - especially since they are officially amateurs. I pay taxes on all the prize money I get in art shows, but I also run my art income as a business, so I deduct cost of materials etc. I think the rules distinguishing hobby vs business income are stupid, but I understand the issue was that too many people make no money from hobbies and then try to deduct their expenses.</p>
<p>I haven’t been a big Olympics watcher since the early 80s. I seem to recall the Soviets used to be a very big force in the games then. They don’t appear to be a significant player thus far - is it because Russia and the others aren’t much of a factor individually, or is it the events they shine in haven’t started, or have their days in the sun gone by?</p>
<p>I know it is tough when you lose, but the russian girls’ attitudes is driving me crazy, the pouting, the weeping. for gosh sakes she got a silver, Ali didnt get the tie and she was wah wah ing all over the place. (sorry its been a rough day) I know they are young…</p>
<p>As written before, the “like everyone else” is not true. There are plenty of example of non-taxed income. Examples are income earned abroad and personal injury settlements. Detaxing the Olympic prizes would not be such a bad precedent.</p>
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<p>Are you really sure of that? Really sure?</p>
<p>.
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Hint Rev Rul 77-263 - Excluded on Section 117.4</p>
<p>About taxes on the medal itself-- the tax experts, when pressed, concede that technically an athlete owes taxes on the metal value of the medal. But I’m willing to believe no athlete has ever actually declared the medal on their taxes, and the IRS is not going to go after anyone for that kind of penny-ante technicality.</p>
<p>The Olympics itself doesn’t pay any prize money to medal winners-- this is not like winning a Nobel prize. Different countries pay different amounts of prize money to medal winners. I don’t know why the prize money shouldn’t be taxable, like any other kind of prize money an athlete might win.</p>
<p>Honestly, I think getting the silver may feel worse than getting bronze. With the latter you feel lucky to be on the podium, with the former, you feel that you lost the gold. I will not begrudge teenage girls the crying, I wish the TV people would leave them alone to cry in peace.</p>
<p>I thought it interesting to see the Chinese woman who won the gold medal rather unexpectedly in table tennis ran over to the stand and bowed deeply to someone in the audience. At first I thought it was to the Chinese champions who came before her, Zhang Yining and Wang Nan who were in the section, but then decided it must be for Mr. Li, who coached all three of them to Olympic and world success. Very touching.</p>
<p>I agree, but I must admit that I was pleasantly surprised that NBC did not devote a second to the vaulter who received a zero on her vault. She sat there and cried and cried and her eye make up ran and someone came over with a tissue and wiped her eyes. I thought that NBC would devote undue attention to her but instead they devoted none. Good for them (there was certainly enough suspense and emotion without it.)</p>
<p>Although I wanted an American to win, I was having fun imagining what it would be like if either of the Russian girls won…can you see either as the World’s Sweetheart? Mustafina must be a real piece of work if her coach describes her as having a difficult character, or something like that.</p>
<p>I could do without the “loser” interviews–I think the athletes should band together and agree to just say, “I think it’s pretty rude to ask me how I felt when I lost.”</p>
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<p>“I could do without the “loser” interviews” -
All athletes are trained by thier coaches how to behave when you win and when you loose. All of them know how. It is pretty straight forward PR and nothing else. They have to be on top no matter what, they represent their country at their events and at their interviews, even the youngest ones as young as 6 y o are trained the proper behavior. C’mon, the olympic athletes are as tough as person could be, they would not be there otherwise, including the yongest ones.
When Phelps mumble shumble thru his interview after loosing 400 IM, it did not look good at all. But he got hold of himself and doing absolutely terrific now. Jordyn did much better after loosing her chance at best overall to the stupidiest rule of them all. She fully deserved to compete if it was for that very unfair rule. But her behavior was very mature. I admire our girls, both gymnasts and swimmers, I do not watch much more than that. I am sure there are other examples of both appropriate and unappropriate “looser” interview. I cannot believe that reporter should be restricted to only “winner” interview. i personally would like to see a character. And frankly Lochte’s “winner” interview after 400 IM was also very very disappointing, wrong attitude that apparently did not serve him very well later on.</p>