Going for the (Taxation) Gold

Rio 2016As we all sit back in our easy chair to enjoy the summer Olympics, Uncle Sam is getting ready to rake in the taxes.   That’s right, each Olympian is awarded a cash payout in addition to the medal.  Well, the Internal Revenue Service treats all the winnings the same way they do our paychecks, by taxing it as income.  The cash is considered “earned income abroad” equal to $25,000 for gold, $15,000 for silver and $10,000 for bronze plus the value of the medal itself. [Read more…]