Community Corner
Should Olympians Be Taxed for Medals?
At a 35 percent income rate, bronze medalists will owe the IRS $350, silver medalists will owe $5,385 and top finishers will be liable for $8,986, according to Americans for Tax Reform.
Olympic medals and prize money are both subject to U.S. income taxes.
“It’s no different from winning Wheel of Fortune or the lottery," Alex Knight, a tax partner at Atlanta’s Habif, Arogeti & Wynne, told Reuters.
A gold medal is worth $650, according to CNN, and could cost athletes up to $236 in taxes. A bronze metal, which is worth $5, could only cost an athlete $2 in taxes
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The real bite, however, will be taxes taken out of Olympians' cash bonuses.
The U.S. Olympic Organizing Committee will award London champions $25,000 for a gold medal, $15,000 for silver and $10,000 for bronze, Reuters reports.
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At a 35 percent income rate, bronze medalists will owe the IRS $350, silver medalists will owe $5,385 and top finishers will be liable for $8,986, according to Americans for Tax Reform.
Should U.S. Olympians be taxed for their medals? Why, or why not? Tell us in the comments below-