Legislation led by U.S. Rep. Bob Dold (R-IL) to eliminate a tax penalty on Team USA medalists cleared the House on Thursday with bipartisan support.
The United States Appreciation for Olympians and Paralympians Act, H.R. 5946, would retroactively eliminate the IRS tax penalty for Team USA athletes who medaled at this year’s Olympic and Paralympic games.
“Our Olympic and Paralympic athletes make numerous personal sacrifices while training to represent the United States on the global stage, and they often get little or no financial help for their training,” Dold said. “The vast majority of Olympic and Paralympic athletes will never sign an endorsement deal or get paid millions of dollars to compete – they’re school teachers, full–time students, retail workers and more. But when they return home with a medal for Team USA, the IRS forces our Olympic and Paralympic champions to pay a penalty for their success. Our bipartisan bill ensures that these athletes can remain focused on fulfilling their Olympic and Paralympic dreams without the fear of getting a huge tax bill in the mail.”
Under the bill, prizes awarded by the U.S. Olympic Committee in amounts of less than $1 million each year would be exempt from an athlete’s taxable income.
“America’s athletes and their families dedicate much of their lives and make considerable financial sacrifices to represent the United States on the world stage,” Scott Blackmun, the CEO of the United States Olympic Committee, said. “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. This legislation is incredibly meaningful to our athletes and will help defray some of the significant expenses they have incurred.”
Speaking in support of the bill, U.S. Rep. Elise Stefanik (R-NY) said that the dedication and sacrifice that all athletes represent in the Olympic and Paralympic games are deserving of the nation’s full support.
“Our district has a unique Olympic history and understands the sacrifices these athletes make on behalf of our nation,” Stefanik said. “This bipartisan legislation is a commonsense fix to ensure our Olympians are not punished for being victorious.”