U.S. Olympic Winners Will Owe IRS Thousands For Medals – Awards
I bet Missy Franklin isn't thinking about the nearly $14,000 she will be on the hook for with the IRS.
Most Americans don't know this (we didnt), but every American athlete who wins a bronze, silver or especially a gold medal in London is going to owe thousands of dollars to the Internal Revenue Service!
It's because the U.S. is one of the few countries that taxes citizens for what is called "worldwide prize income earned overseas." American medal winners must pay taxes on their medals and cash prizes. Athletes receive $25,000 for winning a gold, $15,000 for silver and $10,000 for bronze. Missy Franklin, after winning her first gold medal in swimming, now owes the IRS $8,986. Imagine the tax bill facing Michael Phelps 19 medals later! And still a chance for more!
Thank God Florida Senator Marco Rubio (R) has introduced legislation to exempt medals and the cash honorarium from tax penalties. Response from citizens has been swift and angry over the report, issued by Americans For Tax Reform after it dug up the IRS information.
Somewhere, we can almost hear, "You didn't earn that medal. Someone else made it happen..." so pay up.