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.

Plain-English Summary

This bill would change the federal tax rules for American athletes who win medals or prize money at the Olympic or Paralympic Games. Under current law, athletes can already exclude their Olympic and Paralympic winnings from their taxable income — but only if their total income falls below a certain threshold (currently around $1 million). Athletes who earn more than that limit must pay federal income taxes on their medals and prize money, just like any other income.

This bill would remove that income cap entirely, meaning all U.S. Olympic and Paralympic medal winners could exclude their competition winnings from their federal taxes, regardless of how much money they make overall. This would apply to both the value of the medals themselves and any cash prizes awarded by the U.S. Olympic & Paralympic Committee (for example, athletes currently receive $37,500 for a gold medal).

The bill primarily affects Olympic and Paralympic athletes — a relatively small group of Americans. Higher-earning athletes, such as well-known professional athletes who compete in the Olympics, would benefit the most from this change, since they are the ones currently affected by the income limit. Lower-earning athletes already qualify for the full tax exclusion under existing law.

The bill has been referred to the House Committee on Ways and Means, which handles tax-related legislation, and no further action has been taken yet.