As the medal count for the United States climbs at the 2012 summer games, so does the tax bill for the medal winners. They will have to pay taxes on their prize money. The money is considered taxable by the Internal Revenue Service. The value of the medals could also be subject to tax. According to experts at Liberty Tax Service “This could add up to a sizeable amount. If calculated at the highest rate of 35 percent a gold medal recipient could owe close to $9,000 in taxes. The value of the medal could be taxed as well.”
The infographic created by Liberty Tax Service illuminates some interesting statistics about taxes on Olympic prize earnings.
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Liberty Tax Service is the fastest-growing retail tax preparation company in the industry’s history. The Company has over 4100 offices in the United States and Canada, with the majority owned by franchisees.The Class A Common stock of JTH Holding, Inc. (NASDAQ:TAX), the parent company of Liberty Tax Service is traded on the NASDAQ Global Market. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50371195&lang=en