Olympic Tax Break Bill Signed Into Law
new bill into law
The Journal of Accountancy
United States Appreciation
for Olympians and Paralympians Act of 2016, was signed on Friday and excludes any winnings from the Olympic or Paralympic games from gross income. U.S. Gold medal winners receive a $25,000 cash prize, with silver and bronze winners receiving smaller sums. This cash prize had been counted as part of an athlete's gross income, and thus was taxable until this bill was signed into law. The new law will not apply, however, to Olympic or Paralympic winners with an adjusted gross income of $1 million or more.
The new law is effective for prizes and awards received after Dec. 31, 2015.