U.S. Olympians Have To Pay Taxes On Their Gold Medals

Being one the greatest athletes in the world comes with a price tag. But, what exactly does is cost a U.S. Olympian to win?

It's pretty unbelievable that Michael Phelps is taking home another five golds and one silver from the Rio Games. It's downright astounding that he also just racked up a hefty tax bill by doing so.

You may not know it but the US Olympic Committee awards $25,000 for each gold medal, $15,000 for silver, and $10,000 for bronze -- and the IRS then of course takes its cut. Depending on their tax brackets, athletes owe up to $9,900 per gold, $5,940 for silver, and $3,960 per bronze. So Phelps will owe about $55,000!

However, when you consider his net worth is $55 million, he probably won't notice it much. OF course that's not as true for lesser-known athletes, and CNN Money reports that legislation is in the works in both the House and Senate to make Olympic winnings tax-exempt. (CNN Money)

This is the main reason that I am not in the Olympics.