Thanks for Winning the Gold…Now Pay Your Taxes

Michael Phelps with one of his (taxable) gold medals.

Athletes like Michael Phelps, Serena Williams, and Gabrielle Douglas train for years to make it to the Olympics. Their countless hours of training pay off as they stand on the podium and bow their heads to accept the gold medal…and then they get to pay taxes on their winnings.

According to an article on Reuters, in addition to medals, Olympians win money — $25,000 for gold, $15,000 for silver, and $10,000 for bronze – which can then be taxed by the IRS (for those winners who reside in the US). Even the actual medals can be taxed because they can be classified as valuable gifts.

Senator Marco Rubio proposed legislation last Wednesday to exempt US Olympic athletes from having to pay taxes on their winnings, but for now, how much each winning Olympian will have to pay in taxes will vary based on their age, income level and tax status.

To learn more read, Will U.S. Olympic medalists get a tax break? 

photo credit: jdlasica via photo pin cc