With very few exceptions, Olympians and Paraolympians are amateur (unpaid) athletes, not professionals under contract to the American Hockey League. They pay for years of training, and pay their own way to the Olympic games.
They do all of this to represent the United States of America, to carry our flag, to hear OUR national anthem played during a medal ceremony.
So let's give them a break, and exempt their medals and cash awards from taxes.