Olympians, gold medals, and the IRS

Lawmakers In Washington are going to bat for Olympic gold medal winners to keep the federal government from taxing the medals, with the chairman of the GOP-led tax writing committee among the latest to join  the bipartisan effort.  Thelawmakers are proposing  legislation to stop the IRS from making the Olympians liable for the taxes,  which would include one for honorariums for winning gold, silver or  bronze.

“These athletes deserve every bit of our support and appreciation for  representing the United States on the world stage,” GOP Rep. Dave Camp, chairman  of the tax-writing House Ways and Means Committee, said. “Allowing our Olympians  to receive and enjoy their medals and awards without having to worry about  whether they can pay the taxes on their accomplishment is just one small way we  can show that support.”  Fox News

Olympians receive $25,000 for gold medals, $15,000 for silver, and $10,000 for bronze.  This money is given to them by the nonprofit U.S. Olympic Committee, through private  donations and corporate sponsorships.  So besides all of this, Olympians who win gold face a tax of as much as $9,000 on the value of  the medal,  according  to the Americans for Tax Reform. However, they likely will not  have to a pay the medal tax.

And there are other lawmakers pushing the passage of bills exempting the Olympians from paying income tax, who are GOP Florida Sen. Macro Rubio and Reps. Aaron Schock, R-Ill., Mary Bono Mack,  R-Calif., and G.K. Butterfield, D-N.C.

“Athletes representing our nation overseas in the Olympics shouldn’t have to  worry about an extra tax bill waiting for them back home,” Rubio, a tax-reform  advocate whose Olympic Tax Elimination Act would exempt taxes on the medals and  the honorariums, said.

Bono Mack and Butterfield joined in a bipartisan effort to exempt the  athletes from having to pay or the medals or awards money.

“Our athletes work and sacrifice for years to reach the pinnacle of their  sports and to proudly represent the United States of America in the Olympic  games,” they said in a joint statement. “Only the U.S. tax code can turn the  ‘thrill of victory’ into the agony of victory.” Fox News

Yeah but, that’s still income  money they receive from the Olympic Committee, even though it may be donated or sponsored.  Income is taxable last I heard.  I don’t think the medals should be taxed, but any money that exchanges hands should be.

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    1. Senator pushing bill to keep US Olympic winners from being taxed on prizes | Newsdesk International

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