Bill to make Olympic medals, winnings tax-free

Under current law, U.S. Olympians must pay income tax on any medals and prize money. This summer the U.S. Senate passed a bill to exempt Olympic medals from taxation. The U.S. House has yet to vote on the bill.

The value of a gold medal is about $550. U.S. gold medalists also receive a $25,000 bonus. Silver medalists get $15,000 and bronze medalists get $10,000.

Supporters of the bill to exempt winners from taxation argue that we should not punish Olympians for their remarkable accomplishments. Lesser-known athletes may have very little income to begin with.

On the other hand, the U.S. taxes prize money for all sorts of other awards, including the Nobel prize. Many Olympians also get millions in sponsorship deals, so taxing the prize money for medals is not a hardship.