Congress blocks 'victory tax' on Olympic athletes

BY foxsports • September 29, 2016

WASHINGTON (AP) U.S. Olympic athletes would be exempt from a so-called victory tax under legislation approved by Congress and sent to the president.

The Senate gave final legislative approval Thursday to a bill that 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 medal winners: $25,000 for gold, $15,000 for silver and $10,000 for bronze. That's in addition to the value of the medals themselves - $600 for gold and $300 for silver.

Because the money is considered earned income, it is taxed - a practice some lawmakers refer to the ''victory tax.''

The bill would allow Olympic taxes on high-profile athletes such as swimmer Michael Phelps who earn more than $1 million a year.

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