Olympians Owe IRS Taxes On Medals
Even an Olympic victory comes with a price. In this case, it’s the taxes America’s victorious athletes can expect to pay when they return from the games. Medals and prize money are both subject to income tax, according to the Americans for Tax Reform.
Take for instance Allison Schmitt, who swam the final leg to lead the U.S. to a gold medal in the 4×200 freestyle relay Wednesday. She now owes the IRS $26,679. That’s what she gets for winning two golds, a silver and a bronze medal at the Olympics.
A gold medal, which is worth $650, according to CNN, could cost athletes about $236 in taxes. While a bronze metal, which is worth $5, could only cost an athlete $2 in taxes
The real sting comes when taxes will be taken out of Olympians cash bonuses. The U.S. Olympic Organizing Committee will award London champions $25,000 for a gold medal, $15,000 for silver and $10,000 for bringing home a bronze, Reuters reports.
At a 35 percent income tax rate, bronze medalists will owe the IRS a total of $3,500, silver medalists will owe $5,250 and top finishers will be liable for $$8,750, according to Americans for Tax Reform.