To amend the Internal Revenue Code of 1986 to remove the income limitation on the exclusion from gross income of any medal or prize money won in competition in the Olympic Games or Paralympic Games.

Key Points

• This bill changes the tax law so that U.S. athletes do not have to pay federal income taxes on the medals they win or the prize money they receive from the U.S. Olympic Committee.
• Currently, only athletes who earn less than a certain amount of money get this tax break. This proposal would remove that income limit, making the awards tax-free for every athlete, including those with high-paying sponsorships.
• Supporters believe that athletes who represent the country should be able to keep their full winnings to help pay for their expensive training, equipment, and travel costs.
• If it becomes law, these new tax rules would apply to any Olympic or Paralympic prizes received after December 31, 2025.

Impact Analysis

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