Win the Super Bowl? Face a Big Tax Bill
February 6, 2015
There's another aspect to the Super Bowl that Americans might not have thought about -- taxes. Americans for Tax Reform have analyzed quarterback Tom Brady's tax bill after the Super Bowl, and it's not small. According to their analysis:
- Brady won a 2015 Chevy Colorado truck for being MVP. The truck is taxable and has a fair market value of $34,000. Brady faces a 39.6 percent income tax rate, meaning he must pony up $13,500 to the IRS in taxes.
- Brady plans to give the truck to his teammate, so he's also subject to a gift tax. Under the U.S. tax code, a person can give up to $14,000 before he faces taxes. Because the truck is worth $34,000, Brady will probably be taxed 40 percent on the $20,000 ($34,000 minus the $14,000 exclusion) -- $5,000 for giving a gift to a friend.
- Each player on a winning Super Bowl team receives $97,000 from the NFL. That income will be taxed at the 39.6 percent rate. His winnings will also be taxed by a 3.8 percent Medicare tax.
In all, Americans for Tax Reform put Brady's tax bill at $42,000 for winning the Super Bowl.
Source: Ryan Ellis, "IRS to Steal Tom Brady's Superbowl MVP Truck," Americans for Tax Reform, February 4, 2015.
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