Oscars 2023, Actors to pay $63,378 in taxes on this year’s gifts
Hollywood stars are being asked to pay taxes on this year’s gift bags given to them at the Oscars.
It is generally thought that those who are famous are exempt from certain obligations, but the reality is different. At least, when it comes to such amounts.
Gift bags are handed out to Oscar nominees each year and are called “Everybody Wins.” The value of this year’s gift bags is estimated to reach $126,000, and while everyone thought it was a free perk for the candidates, the Internal Revenue Service (IRS) considers it taxable income.
According to Forbes, the value of the gifts would cost $46,620 in federal taxes. Applicants living in California will have to pay an additional 13.3% in state taxes, which amounts to about $16,000. In total, celebrities are required to pay $63,378 in taxes on their supposedly “free” gifts.
Distinctive Assets sees this as a huge benefit, giving companies the exposure they need and allowing stars to try new products and experiences.
However, the heavy tax burden can make gift bags less desirable than they first appear. While some celebrities may be able to “afford” the taxes, this is a significant expense that can affect some financially.
