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U.S. athletes face Olympic tax bill for their medals

This article is reprinted by permission from NerdWallet.

Many of the country’s best athletes have given the U.S. big wins at this year’s Olympics, and the U.S. is going to give them something right back: a tax bill.

That’s right — winning an Olympic medal comes with a tax bill. The U.S. Olympic Committee pays athletes $25,000 for winning gold, $15,000 for silver and $10,000 for bronze; winners in the Paralympics get $5,000 for gold, $3,000 for silver and $2,000 for bronze.

In the eyes of the IRS, those winnings are taxable income. However, because the U.S. has a progressive tax system that taxes higher income at higher rates, the size of that Olympics tax bill depends on how much the athlete already makes.

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