Taxes on Olympic Medals

US athletes are going to have to pay thousands of dollars in taxes by wining medals.  It breaks down like this.

  • A gold medal, which is worth $650, according to CNN, could cost athletes about $236 in taxes
  • a bronze metal, which is worth $5, could only cost an athlete $2 in taxes.

The big taxes kick in as a result of the U.S. Olympic Organizing Committee awarding London champions $25,000 for a gold medal, $15,000 for silver and $10,000 for bringing home a bronze. (Reuters)  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 gold medalists will be liable for $8,750, according to Americans for Tax Reform.  Of course, many high-profile athletes will also come home to lucrative sponsorships offers, also all taxable.

Other countries also compensate their medal-winning athletes.  Read this article for more info: http://www.huffingtonpost.com/2012/08/01/olympians-owe-irs-taxes-medals-cash-bonuses_n_1729486.html

 

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