Gary Keller (Ethiopia) shared this great article on Uncle Sam and the Olympics. I think it is important to note that Gary is a CPA.

"Why the IRS cheers a little louder when a US athlete wins Olympic gold …American athletes who win medals at the 2012 London Olympics will have to cough up some dough to the IRS when they return the United States. According to research done by the Americans for Tax Reform Foundation, U.S. Olympic athletes are liable to pay income tax on medals earned and prizes received at the London games.The top income tax bracket is 35 percent, generally representing the highest US income tax rate that individuals are subject to. Under U.S. tax law, they must add the value of their Olympic medals and prizes to their taxable income (i.e. a tax bite taken out of their Olympic glory). At today’s commodity prices, the value of a gold medal is about $675. A silver medal is worth about $385 while a bronze medal is worth under $5. There are also prizes that accompany each medal: $25,000 for gold, $15,000 for silver, and $10,000 for bronze.If a US Olympic winner was in the top income tax rate (35 percent), the total tax burden on a gold medal winner, would be approximately $8986. A silver medal winner's total tax burden would be about $5,385, while a bronze medal winner's total tax burden would be about $3,502."

You learn something new everyday at the Olympics!

Thanks for the fun tax facts! (Not a normal statement)