President Barack Obama signed legislation into law on Friday that U.S. Rep. Bob Dold (R-IL) spearheaded to eliminate tax penalties on Team USA athletes bringing medals home from the Olympic and Paralympic games.
Dold’s bipartisan United States Appreciation for Olympians and Paralympians Act, H.R.5946, cleared both the House and the Senate with bipartisan support.
“Our Olympic and Paralympic athletes make tremendous personal sacrifices while training to represent Team USA — most of the time with very little financial help — but until now the IRS has been taxing them on the value of their medal and award,” Dold said.
Under the new law, the value of medals and other prizes won in Olympic and Paralympic games will be exempted from the taxable income of Team USA athletes who earn less than $1 million during that year.
The measure does not impact taxes on endorsements and sponsorship deals.
“Our bipartisan bill has ensured that when Team USA athletes return home with a medal, they will not receive a tax bill from the IRS,” Dold said. “Most of these athletes will never sign an endorsement deal or a professional contract, which is why it’s so important that these athletes will no longer be forced to pay a big tax bill when they achieve their Olympic dreams representing the United States.”
Scott Blackmun, the CEO of the United States Olympic Committee, said that America’s athletes and their families dedicate much of their lives and make financial sacrifices to represent the United States on the world stage.
“Unlike most National Olympic Committees, the USOC and Team USA athletes do not receive federal funding and must rely on the generous support of the American public,” Blackmun said. “This legislation is incredibly meaningful to our athletes and will help defray some of the significant expenses they have incurred.”