Olympic medalists face steep taxation from the IRS

Before you go, we thought you'd like these...
Before you go close icon

Olympic Medalists Face Steep Taxation from the IRS

Team USA's 554 members have headed off to the 2016 Rio Olympics to obtain one thing: a gold medal.

However, going for the gold may come with a hefty price-tag come tax season.

For winning a gold, silver or bronze medal, athletes are given a monetary reward which is $25,000, $15,000, or $10,000, respectively. With that large prize comes a downside. The IRS considers these rewards regular income, which makes them subject to taxation.

SEE MORE: Everything you need to know about the Summer Olympics

So, athletes could end up paying as much as $9,900 in tax for a gold medal, $5,940 for a silver medal, or $3,960 for a bronze.

See photos of the top 5 gymnasts of the 2016 U.S. Olympic team:

21 PHOTOS
The top 5 gymnasts of the 2016 US Olympic team
See Gallery
The top 5 gymnasts of the 2016 US Olympic team
Gymnast Simone Biles poses for a portrait at the U.S. Olympic Committee Media Summit in Beverly Hills, Los Angeles, California March 7, 2016. REUTERS/Lucy Nicholson SEARCH "THE WIDER IMAGE" FOR ALL STORIES.
Jul 8, 2016; San Jose, CA, USA; Simone Biles from Spring, TX, during the uneven bars in the women's gymnastics U.S. Olympic team trials at SAP Center. Mandatory Credit: Robert Hanashiro-USA TODAY Sports
SAN JOSE, CA - JULY 10: Simone Biles competes on the balance beam during Day 2 of the 2016 U.S. Women's Gymnastics Olympic Trials at SAP Center on July 10, 2016 in San Jose, California. (Photo by Ezra Shaw/Getty Images)
ST. LOUIS, MO - JUNE 24: Simone Biles competes on the vault during day one of the 2016 P&G Gymnastics Championships at Chafitz Arena on June 24, 2016 in St. Louis, Missouri. (Photo by Dilip Vishwanat/Getty Images)
LOS ANGELES, CA - NOVEMBER 20: Gymnast Gabby Douglas poses for a portrait at the USOC Rio Olympics Shoot at Quixote Studios on November 20, 2015 in Los Angeles, California. (Photo by Harry How/Getty Images)
Jul 10, 2016; San Jose, CA, USA; Gabby Douglas during the balance beam in the women's gymnastics U.S. Olympic team trials at SAP Center. Mandatory Credit: Robert Hanashiro-USA TODAY Sports
Gabby Douglas competes on the balance beam during the U.S. women's gymnastics championships Sunday, June 26, 2016, in St. Louis. (AP Photo/Jeff Roberson)
Jul 8, 2016; San Jose, CA, USA; Gabby Douglas from Tarzana, CA, during the vault in the women's gymnastics U.S. Olympic team trials at SAP Center. Mandatory Credit: Robert Hanashiro-USA TODAY Sports
LOS ANGELES, CA - NOVEMBER 20: Gymnast Aly Raisman poses for a portrait at the USOC Rio Olympics Shoot at Quixote Studios on November 20, 2015 in Los Angeles, California. (Photo by Harry How/Getty Images)
ST. LOUIS, MO - JUNE 24: Aly Raisman competes on the balance beam during day one of the 2016 P&G Gymnastics Championships at Chafitz Arena on June 24, 2016 in St. Louis, Missouri. (Photo by Dilip Vishwanat/Getty Images)
Jul 8, 2016; San Jose, CA, USA; Aly Raisman, Needham, MA, during the balance beam in the women's gymnastics U.S. Olympic team trials at SAP Center. Mandatory Credit: Robert Hanashiro-USA TODAY Sports
Aly Raisman reaches for the top bar on the uneven bars during the preliminary round of the women's Olympic gymnastics trials, Friday, June 29, 2012, in San Jose, Calif. (AP Photo/Jae C. Hong)
LOS ANGELES, CA - NOVEMBER 20: Gymnast Madison Kocian poses for a portrait at the USOC Rio Olympics Shoot at Quixote Studios on November 20, 2015 in Los Angeles, California. (Photo by Harry How/Getty Images)
SAN JOSE, CA - JULY 08: Madison Kocian competes on the balance beam during day 1 of the 2016 U.S. Olympic Women's Gymnastics Team Trials at SAP Center on July 8, 2016 in San Jose, California. (Photo by Ronald Martinez/Getty Images)
Madison Kocian competes in the vault during the U.S. women's gymnastics championships, Friday, June 24, 2016, in St. Louis. (AP Photo/Tony Gutierrez)
Madison Kocian of the United States performs on the uneven bars during the women's qualifying of the Artistic Gymnastics World Championships at the Guangxi Gymnasium in Nanning, capital of southwest China's Guangxi Zhuang Autonomous Region Sunday, Oct. 5, 2014. (AP Photo/Andy Wong)
U.S. gymnast Laurie Hernandez poses at the Karolyi Ranch Saturday, Sept. 12, 2015, in New Waverly, Texas. (AP Photo/David J. Phillip)
EVERETT, WA - APRIL 09: Laurie Hernandez of the United States competes on the uneven bars during Day 2 of the 2016 Pacific Rim Gymnastics Championships at Xfinity Arena on April 9, 2016 in Everett, Washington. (Photo by Ezra Shaw/Getty Images)
July 10, 2016; San Jose, CA, USA; Laurie Hernandez, from Old Bridge, NJ, during the floor exercise in the women's gymnastics U.S. Olympic team trials at SAP Center. Mandatory Credit: Kyle Terada-USA TODAY Sports
Jul 8, 2016; San Jose, CA, USA; Laurie Hernandez from Old Bridge, NJ during the balance beam in the women's gymnastics U.S. Olympic team trials at SAP Center. Mandatory Credit: Robert Hanashiro-USA TODAY Sports
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

To be fair, the taxed amount per medal does vary widely based on the athlete's tax circumstances.

Still, it could cost these athletes as much as 36 percent of their earnings!

Then again, can you really put a price on the taste of victory?

Check out the 'Uninhabitable' Olympic Village in Rio:

22 PHOTOS
'Uninhabitable' Olympic Village in Rio
See Gallery
'Uninhabitable' Olympic Village in Rio
RIO DE JANEIRO, BRAZIL - JULY 25: Preparations continue at the Olympic athletes' village, including the building that will house the Australian team, on July 25, 2016 in Rio de Janeiro, Brazil. (Photo by Matthew Stockman/Getty Images)
View of an athlete's room at the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
An apartment at the Olympic Village is pictured during a media visit, in Rio de Janeiro, Brazil, June 23, 2016. REUTERS/Sergio Moraes
View of an athlete's room at the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: The kitchen and living room of one of the units within the Olympic and Paralympic Village for the 2016 Rio Olympic Games. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: A bedroom of one of the units within the Olympic and Paralympic Village for the 2016 Rio Olympic Games. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: A bathroom of one of the units within the Olympic and Paralympic Village for the 2016 Rio Olympic Games. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
View of balconies of the Finnish team's apartments at the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
View of the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
View of the cafeteria at the Olympic and Paralympic Village for the Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
View of the Fitness Center at the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: A general view of the fisiotherapy room of the Olympic and Paralympic Village for the 2016 Rio Olympic Games displaying the Olympic Rings in Barra da Tijuca. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: Details of the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Barra da Tijuca. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: A general view of the medical room of the Olympic and Paralympic Village for the 2016 Rio Olympic Games displaying the Olympic Rings in Barra da Tijuca. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
View of a cryotherapy room at the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
RIO DE JANEIRO, BRAZIL - JULY 23: A condoms' distribution machine at the Olympic and Paralympic Village for the 2016 Rio Olympic Games displaying the Olympic Rings in Barra da Tijuca. The Village will host up to 17,200 people amongst athletes and team officials during the Games and up to 6,000 during the Paralympic Games on July 22, 2016 in Rio de Janeiro, Brazil. (Photo by Buda Mendes/Getty Images)
The Olympic symbol is seen at the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
Footprints of Vinicius, the Olympic mascot, are seen at the entrance of the cafeteria of the Olympic and Paralympic Village for the 2016 Rio Olympic Games in Rio de Janeiro, Brazil, on July 23, 2016. / AFP / YASUYOSHI CHIBA (Photo credit should read YASUYOSHI CHIBA/AFP/Getty Images)
A room of a polyclinic is seen during a guided tour for journalists to the 2016 Rio Olympics Village in Rio de Janeiro, Brazil, July 23, 2016. REUTERS/Ricardo Moraes
A view of the Olympic Village is pictured during a media visit, in Rio de Janeiro, Brazil, June 23, 2016. REUTERS/Sergio Moraes
General view of athletes' accommodation can be seen during a guided tour for journalists to the 2016 Rio Olympics Village in Rio de Janeiro, Brazil, July 23, 2016. REUTERS/Ricardo Moraes
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

Read Full Story

Markets

S&P 500 2,259.53 13.34 0.59%
DJIA 19,756.85 142.04 0.72%
NASDAQ 5,444.50 27.14 0.50%
DAX 11,203.63 24.21 0.22%
HANG SENG 22,760.98 -100.86 -0.44%
NIKKEI 225 18,996.37 230.90 1.23%
USD (per EUR) 1.06 -0.01 -0.63%
USD (per CHF) 1.02 0.00 0.20%
JPY (per USD) 115.30 1.23 1.08%
GBP (per USD) 1.26 0.00 -0.04%

From Our Partners