Michael Phelps, after winning his record 20th Olympic medal last Thursday, probably had one thing running through his mind: “I better get a good accountant.”
Because on all 20 of those medals, Phelps has potentially paid between $3,500 and $8,950 in tax bills. That's because both the cash prize Phelps won for each medal — between $10,000 and $25,000, depending on the medal — and the medal itself is taxable, according to the Chicago Tribune.
An Olympian receives $10,000 for a bronze medal, $15,000 for a silver medal and $25,000 for a gold medal. Additionally, there is a value to the medals and Olympians are technically expected to pay taxes on them as well, with the value of the gold in the gold medal upwards of $600, according to the Tribune.
What do you think? Should Olympic medals be taxed? Or just the cash prize? Tell us in our comments section.
Republican presidential candidate Mitt Romney and Sen. Marco Rubio, R-Florida, both said the tax on Olympic medals and prizes should be waived, according to the Tribune.
