Michael Phelps could face over 50k in taxes for winning.

This is why the Thune bill for an Olympic tax exemption needs to be passed:

Rio Olympics 2016 gold medalists from the United States will be subject to federal income tax of up to $9,900 by the Internal Revenue Service.

The figure is based on the maximum “victory tax” rate in the US of 39.6%, charged to the country’s highest earners, according to Americans for Tax Reform. Therefore, silver and bronze medalists in this tax bracket will be taxed $5,940 and $3,960 respectively.

Athletes in the lower brackets would be charged with 15%. Training expenses would also likely be deductible. For each medal a US athlete wins in the Olympics, the US Olympic Committee pays them $25,000 for gold, $15,000 for silver, and $10,000 for bronze. Michael Phelps is bringing home $140,000 for his five gold medals, and one silver medal, although he will be taxed up to $55,400 for this amount.

Read it here.

Considering we don’t subsidize athletes like many other countries, it’s the least we can do.

One thought on “Michael Phelps could face over 50k in taxes for winning.

  1. Cliff and Julee Hadley

    Unless they have the dumbest accountants on the planet, none of these athletes have anything to worry about re federal taxes. A non-issue.