The U.S. Olympic Commission awards cash prizes to Olympians who win a medal -- $25,000 for gold, $15,000 for silver and $10,000 for bronze. But the money is considered earned income abroad and subject to IRS taxation.
The marginal-income tax bracket in which an Olympian falls would decide how much he or she must pay. According to estimates by Americans for Tax Reform, those in the top bracket could pay as much as $9,900 for gold. Olympians in that bracket also could pay $5,940 for a silver and $3,960 for a bronze medal.
These athletes volunteer to represent our nation at the Olympics, they deserve not to be taxed on winning.