Sochi Olympics: Taxes American medalists have to pay

Feb 8, 2014; Sochi, RUSSIA; Sage Kotsenburg (USA), middle, celebrates on the podium after receiving his gold medal during the medal ceremony for the snowboard slopestyle in the Sochi 2014 Olympic Winter Games at the Medals Plaza. Mandatory Credit: Kyle Terada-USA TODAY Sports

The goal of every Olympian is to win a medal. But winning a medal doesn’t come with out a price, if you win one in an event you can expect to pay huge taxes on it.

From Yahoo Sports:

On the other hand, Americans should expect to hand over a portion of their medal prizes to Uncle Sam. As noted by the group Americans for Tax Reform (via FoxNews.com), headed by anti-tax zealot Grover Norquist, the United States taxes earned income abroad, which means that all medalists will be taxed for their prizes. According to ATR, those in the top tax bracket (39.6 percent) — like, say, Shaun White or any Team USA hockey player — will pay $9,900 on a gold medal — while those in the bottom tax bracket (10 percent) will pay $2,500 for a gold. Many developed nations do not tax Olympians for their medal prizes. On the other hand, others such as Great Britain don’t give their medalists cash prizes at all.

In case you were curious as to how much a medal is actually worth, check out this graphic below. But know that prizes that American’s are taxed on includes cash prizes, not strictly on the medal itself (gold medalists earn $25,000, silver medalists get $15,000, and bronze medalists earn $10,000).

Topics: 2014 Sochi Winter Olympics

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