The winners at the Olympic Summer Games will likely become the newest targets of the IRS. The medal winners are also the winners of a large sum of money that is dependant of what medal they won. For example, “[a] gold medal brings $25,000, [s]ilver medals get a person $15,000, [a]nd a bronze is worth $10,000.” This means that gold medal winner would likely receive a tax on the winnings in the amount of $8,986, a silver medal winner would likely have to pay $5,385, and a bronze medal winner would likely have to pay $3,500.
Now, Senator Marco Rubio has proposed legislation that would make athletes competing in the Olympic Games exempt from the federal income tax.
See Chris Chase, Winning a Gold Medal Brings a $9,000 Tax Bill, Fourth-Place Medal, Aug. 1, 2012.
Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.
