Here is some interesting Olympics math coming from Americans for Tax Reform. American athletes who win medals at the 2012 London Olympics will have to cough up some dough to the IRS when they return the United States:
According to research done by the Americans for Tax Reform Foundation, U.S. Olympic athletes are liable to pay income tax on medals earned and prizes received at the London games.American medalists face a top income tax rate of 35 percent.
Under U.S. tax law, they must add the value of their Olympic medals and prizes to their taxable income.
It is therefore easy to calculate the tax bite on Olympic glory.At today’s commodity prices, the value of a gold medal is about $675. A silver medal is worth about $385 while a bronze medal is worth under $5.There are also prizes that accompany each medal:
$25,000 for gold, $15,000 for silver, and $10,000 for bronze.
ATR explains that U.S. medal winners face a top income tax rate of 35 percent. The total tax burden on a gold medal winner, according to ATR’s analysis, would be up to $8986. A silver medal winner’s total tax burden would be up to $5,385, while a bronze medal winner’s total tax burden would be up to $3,502.