fb

Would you be happy if you won an Olympic medal and this happened?

Did you know that if you win a medal at the Olympics then you will be taxed on it?

The above statement isn’t true for residents of every country but if you’re an American then unfortunately for you it’s true.

So you’ve spent years training to perfect your sport. The big Olympic day arrives and you are successful and win a medal. Surely, this is the pinnacle of any sportsman’s career?

If an American athlete is successful at the Olympics then it is also good news for the American tax authorities as under US tax laws anybody that wins an Olympic medal has to add the value of that medal to their taxable income.

This in itself raises an interesting question as to what is the “value” of an Olympic medal as I’m sure most successful Olympians consider their medal to be priceless.

According to information released by the organisation Americans for Tax Reform though “at today’s commodity prices, the value of a gold medal is about $675. A silver medal is worth about $385 while a bronze medal is worth under $5” (although personally I doubt Usain Bolt would sell his 100m gold medal for $675…).

The US Olympic committee also award cash prizes to successful medallists ($25,000 for gold, $15,000 silver and $10,000 for bronze).

Adding the value of the medal to the cash prize and then applying the 35% top rate of income tax in the US gives a tax bill per Olympic medal of:

Gold medal – $8,986
Silver medal – $5,385
Bronze medal – $3,502

As at the time of writing the US team had 34 gold, 22 silver and 25 bronze medals. This would give the US tax authorities over $500,000 of tax revenue.

So if you’re a successful American Olympic medallist then first of all many congratulations on your sporting success and secondly, don’t forget to settle your tax bill…

Share this entry

Recent articles

View All Articles
PwC Australia and the “Rule of Three”
Sep 21, 2023
Title
PwC Australia and the “Rule of Three”
Excerpt

As the future business leaders of tomorrow, it’s crucial for students to stay updated on key developments in […]

CIMA VS ACCA: which is best for you? (and what about CMA?)
Sep 15, 2023
Title
CIMA VS ACCA: which is best for you? (and what about CMA?)
Excerpt

When it comes to a career in accounting or finance, deciding which professional qualification to pursue can be […]

How’s your lipstick?
Sep 12, 2023
Title
How’s your lipstick?
Excerpt

In the world of business, understanding consumer behavior is crucial. The “lipstick effect” offers a fascinating glimpse into […]

How an online Certified Management Accountant (CMA) course can advance your career.
Sep 05, 2023
Title
How an online Certified Management Accountant (CMA) course can advance your career.
Excerpt

In today’s fast-paced and competitive business world, professionals are constantly looking for ways to differentiate themselves and advance […]

Waiting for your ACCA exam results…
Sep 01, 2023
Title
Waiting for your ACCA exam results…
Excerpt

Waiting for the results of your ACCA exams can be an incredibly stressful time. The uncertainty, the anticipation, […]

APM vs AFM ACCA: which path suits your career goals?
Aug 30, 2023
Title
APM vs AFM ACCA: which path suits your career goals?
Excerpt

“Which is easier – Advanced Performance Management (APM) or Advanced Financial Management (AFM)?”

ROI: how enrolling employees on ACCA courses will yield long-term business success
Aug 18, 2023
Title
ROI: how enrolling employees on ACCA courses will yield long-term business success
Excerpt

The Association of Chartered Certified Accountants (ACCA) is one of the most respected global accounting qualifications. Organisations across […]

Would Michael Porter sleep in this bed?
Aug 14, 2023
Title
Would Michael Porter sleep in this bed?
Excerpt

Management theories play a significant role in guiding corporate strategy. And when it comes to strategy and management […]