Home > Tax News & Info > Olympic Winnings: Taxable?

Olympic Winnings: Taxable?

I would bet most people watching the Olympics this year have not considered that taxes have any part in the proceedings. According to current US tax code any cash winnings that are received from the Olympics is considered taxable income.  What does this mean for our successful Olympians? The winners of Gold receive $25,000, Silver receives $15,000, and Bronze receives 10,000.  As of the morning of August 6th the United States has won 28 Gold, 14 Silver, and 19 Bronze medals.  This would equal 1.1 million dollars in taxable income to our winners.  With some of our athletes already in the higher income brackets of 35% ie basket ball players, this could create a large tax liability. As for the medals themselves, thus far the tax code can be interpreted to include the medals themselves as being taxable as valuable gifts.  Should these winners have to pay the tax? That will have to be debated as new legislation has been proposed by US Senator Marco Rubio to exclude Olympians from taxation of prize money on the federal level. Whether the legislation will pass and whether the States will follow federal lead remains to be seen.

Comments ( 0 )
  1. No comments yet.
Comments are currently closed.
Trackbacks & Pingbacks ( 0 )
  1. No trackbacks yet.
  2. Trackbacks are currently closed.