Uncle Sam doesn’t care if you just won GOLD at the Olympics – he’s wants his share of winnings – and he’s not ashamed to collect it upon return…
Medals and prize money are both subject to income tax and 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 bringing home a bronze, Reuters reports.
At a 35 percent income tax rate, bronze medalists will owe the IRS a total of $3,500, silver medalists will owe $5,250 and top finishers will be liable for $$8,750, according to Americans for Tax Reform.
There had been controversy leading up to London Games regarding Britain’s stringent tax laws, which ordinarily take a large cut of the global income of any international athlete competing on its soil. The policy has led some athletes, including golfer Sergio “El Nino” Garcia and tennis star Rafael Nadal, to abstain from competing in British tournaments.
Worried the policy would discourage participation from Olympic superstars like sprinter Usain Bolt,who has previously criticized the law, British taxing authorities agreed to an exemption for London 2012 Olympic athletes.
UPDATE: Senator Marco Rubio (R- Fla.) introduced a bill to Congress on Wednesday that would exempt Olympic winners from taxes on prizes received at the London games.