She has flipped, tumbled and leapt her way into the hearts of millions over the course of the Olympic games in Rio. But when Simone Biles returns home she will be in for not just a major celebration but also a hefty tax bill.
The 19-year-old has won five Olympic medals – four gold and one bronze. She has cemented her title as the world’s best gymnast by taking home the gold in the all-around after three successive world championship titles – a feat only accomplished by three others in history.
But all that winning will cost her. On 21 August, Biles could be slapped with a tax bill close to $43,560.
That estimate is based on the $2m that she has accumulated in endorsement deals and assuming she is charged in the highest income tax bracket in the US – 39.6%!!!
Biles is not alone, her fellow US medallists like Michael Phelps, Katy Ladeki, Ryan Lochte etc will be slapped with tax bills for their victories as well.
What are they taxed on?
US athletes who win a medal at the Rio games will take home the hardware and a cash bonus from the US Olympic Committee.
Gold medallists will receive $25,000, silver medallists get $15,000, and bronze winners earn $10,000.
Those winnings are taxed as income, the same way Americans are taxed on other prize money, like lottery winnings. Most countries exempt their athletes from these taxes.
If you ask me, I think it’s ridiculous…
