WASHINGTON (AP) — A bill moving forward in Congress would block the IRS from taxing most medals or other prizes awarded to U.S. Olympians.
The U.S. Olympic Committee awards cash prizes to Olympic medal winners: $25,000 for gold, $15,000 for silver and $10,000 for bronze. Because the money is considered earned income, it is taxed – a practice some lawmakers refer to the “victory tax.”
The Senate passed legislation to make the winnings tax-free just before the Summer Olympics. The House approved a similar bill on Thursday, 415-1.
The House bill would allow Olympic taxes on high-profile athletes such as swimmer Michael Phelps who earn more than $1 million a year.