Unbeknownst to some, an American citizen is taxed on their worldwide income irregardless of the source from which it was derived. As a result, Olympic athletes who perform well and win a medal in Sochi this month will be taxed on the value of the medal(s) they win. In addition to receiving a medal, athletes who finish in the top 3 also receive a cash prize, which is also taxed. There was a recent proposal to exempt Olympic prizes from taxation.
Below are links to additional information on this subject of taxing Olympic Gold Medal Winners.
If you have questions about your tax liability, whether it is from running a small business, being your family’s chief financial officer, or an Olympic medal win, contact us at the Law Offices of Bryan S. Kessler, P.A. today for a free consultation. You can also call us at Phone: (941) 786-1579. Thank you for reading, and congrats to all the 2014 Olympic Winners and Athletes in Sochi!