As of today, Team USA has won 47 medals in the 2012 Summer Games and Congress has recently raised the issue of whether or not they should be taxed on their medals or winnings (gold = $25k, silver = $15k, bronze = $10k).
Taxed On Their Medals?!
Who came up with that idea? It’s been there since the beginning. Just like being taxed on lottery winnings, gambling winnings or raffle prizes – these bronze, silver or gold medals are “taxable”. But how much tax is due will depend on the tax bracket of the winner. For the high profile winners like Phelps and Lochte, who also receive large endorsements, they may owe 35% of their winnings to the IRS. Who knew that Uncle Sam was part of TEAM USA.
But for those athletes who have little or no earnings this year, their Olympic cash/metal might not affect their tax bill much at all.
If Congress exempts Olympic winnings, why not give our veterans the same benefit? Someone could argue they “deserve” it, too. (Or do they deserve it more?)