WASHINGTON (AP) – U.S. Olympic athletes would be exempt from a so-called victory tax under legislation approved by Congress and sent to the president.
The Senate gave final legislative approval Thursday to a bill that would block the IRS from taxing most medals or other prizes awarded to U.S. Olympians.
The U.S. Olympic Committee awards cash prizes to medal winners: $25,000 for gold, $15,000 for silver and $10,000 for bronze. That’s in addition to the cash value of the medals themselves – about $600 for gold, $300 for silver. Bronze medals have little monetary value.
Because the money is considered earned income, it is taxed – a practice some lawmakers refer to the “victory tax.”
The bill would allow Olympic taxes on high-profile athletes such as swimmer Michael Phelps or NBA star Carmelo Anthony who earn more than $1 million a year.