Senator Proposes Legislation That Will Block IRS from Taxing Olympic Medals

On August 2, 2016, Sen. Charles Schumer, D-N.Y., proposed a bill titled “United States Appreciation for Olympians and Paralympians.” The Senate approved the bill by unanimous consent, and the measure has been sent to the House for consideration.

If enacted, U.S. Olympians and Paralympians would be permitted to exempt the value of their medals and monetary prizes from their taxable income, Schumer explained. The bill would have a “negligible effect on federal revenue and would not affect taxes on any potential endorsement or sponsorship income earned by Olympic athletes,” according to Schumer. “After a successful and hard fought victory, it’s just not right for the U.S. to welcome these athletes home with a tax on that victory,” Schumer said.

Lawrence Israeloff

Lawrence Israeloff, Esq., CPA, CFP® is a tax attorney and CPA whose practice focuses on income tax planning, trusts and estate planning and administration, and financial planning for high-net-worth individuals and privately held businesses. He brings decades of experience from leading New York law and accounting firms.