Posts Tagged: Olympics

U.S.A! U.S.A.! – House Votes to Eliminate the “Victory Tax” on Olympic Prizes

Olympic prize awards are generally taxed like other prizes. Some lawmakers have seen this practice of taxing our Olympians as a “victory tax.” On Thursday (Sept. 22, 2016), the House of Representatives overwhelmingly passed a bill exempting U.S. medal winners from paying taxes on the money they receive from the U.S. Olympic Committee when they earn a medal. U.S. Olympians are paid $25,000 for gold, $15,000 for silver and $10,000 for bronze. A similar bill passed the Senate in July, and President Obama is expected to sign the bill into law. (Just so the bill doesn’t sound too favorable to big-time athletes, winners who earn more than $1 million per year can’t take advantage of the tax break.)

Where does this leave the average Joe or Jane prize winner? “Win a New Car” and you could end up paying a hefty tax before you get behind the wheel. (And no, it’s not a “gift” exempt from taxes.) There are plenty of instances where prize winners simply decline a valuable prize or donate it to charity to avoid paying taxes. “Taxes are responsibility of winners” is rightly in Official Rules, but who really thinks of that when they enter a sweepstakes for a trip of a lifetime? (more…)

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In Honor of the Olympics We Give You the International Sweepstakes Edition

In a twist that would make Alanis Morrisette sing, “Isn’t It Ironic”, last week the New York Times reported that a survivor of an Emirates airline crash landing in Dubai learned days later that he had won $1,000,000 in the Dubai Duty Free Millennium Millionaire Sweepstakes. http://nyti.ms/2bhMxkK

For this Sweepstakes, sponsored by Dubai Duty Free, each passenger that goes through Dubai International Airport can purchase a $278 ticket with a chance to win a $1 million prize. The odds are an incredible 5,000 to 1. (For a state of reference, the odds of winning $1 million in the McDonald’s Money Monopoly Game are roughly 1 in 513,591,720.)

Dubai Duty Free’s “pay to play” sweepstakes seems as foreign to Americans as the Olympic events found only on an Internet feed. Perhaps you didn’t know that goggles are optional in synchronized swimming or that Greco-Roman wrestling forbids holds below the waist or even that it’s “badminton” and not “badmitton”. Whenever you “go global” you need to brush up on international rules, and this is no less important when running a sweepstakes. Therefore, I give you some unusual sweepstakes quirks throughout the world: (more…)

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