Monday, February 10, 2014
Many national Olympic committees pledge money to anyone who can bring home a medal. In the United States, gold medalists earn $25,000, silver medalists earn $15,000, and bronze medalists earn $10,000.
Many developed nations choose not to tax Olympians for these prizes, but the U.S. does tax income earned abroad. Olympians in the top tax bracket, such as Shaun White or Team USA hockey players, would pay $9,900 on a gold medal while those in the bottom tax bracket would pay $2,500.
Rep. Blake Farenthold (R-TX) recently introduced the Tax Exemption for American Medalists Act, which would waive these taxes.
See Eric Freeman, Here Are the Taxes Team USA Medalists Can Expect On Their Prize Money, Yahoo!, Feb. 8, 2014.
Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.