Winning US Olympians Will Receive a Tax Bill (And why Larisa Latynina Didn't Congratulate Michael Phelps)

US Olympians who win medals will be taxed by the IRS on the value of the medal and the prize money they earn. Winning the Bronze is the best deal. 2 bucks for the medal and approximately $3,500 on the $10k in prize money. Gold and silver ramp up the burden:

Silver: $135 medal tax, $5250 on the $15k in prize money.

Gold: $236 medal tax, $8750 on the $25k in prize money.

Hugh Johnson adds, "Because the U.S. is virtually the only developed nation that taxes “worldwide” income earned overseas by its taxpayers, our Olympic athletes face a competitive disadvantage that has nothing to do with sports."

14-year-old Missy Franklin has a gold from the 100m backstroke and a bronze from the 4 x 100m freestyle relay...

In a related stupid note, Michael Phelps is now the all-time Olympic medal record-holder with 19 medals to his name. Larisa Latynina won 18 Olympic medals in gymnastics for the Soviet Union. Larisa was at the games yesterday when Phelps tied her record with silver in the 200-meter butterfly and surpassed it with gold in the 4x200 freestyle relay. Jere Longman writes:

Latynina had hoped to congratulate Phelps and present him with his record-setting medal. But her daughter and others said that Olympic rules did not allow it. It seemed a shame, a grand moment to celebrate the most prolific Olympic champions squandered by red tape.

But Latynina remained gracious, fanning herself in the hot upper reaches of the Aquatics Center. “Phelps deserves the record,” she said through an interpreter. “He is such a talented sportsman.”

Then Latynina smiled.

“Among women, I’m sure I will stay No. 1 for a long time,” she said.

Well done, IOC. Well done.

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