Winning an Olympic medal is a remarkable achievement, but for US athletes, the financial rewards come with a catch. US Olympians who medal in the Paris Olympics will have to share a portion of their prize money with French tax collectors.
While the United States Appreciation for Olympians and Paralympians Act exempts US athletes who earn less than $1 million per year from federal taxes on their Olympic prize money, that money will still be subject to state, local, and French taxes.
Athletes who win a gold medal in Paris will receive $37,500, while silver and bronze medalists will earn $22,500 and $15,000, respectively. However, the French government will impose a 15% withholding tax on any earnings over $10,000, with the final tax burden potentially ranging from 20% to 30%.
French tax attorney Isabelle Vendeville, noted that US athletes must “declare all French source income” and will be subject to the withholding tax, which will later be applied when they file their French tax return as per sportico.
For US athletes with lucrative endorsement deals, it might not be so grim. They’re unlikely to be taxed by the French government.
The complicated tax landscape extends beyond just the French government. Some US athletes may have bonus clauses in their endorsement contracts that are impacted by their medal winnings, and those bonuses would be taxable under US law.
World Athletics, will award $50,000 to gold medalists in track and field events, with relay teams splitting the money. These funds are not exempted by the US Appreciation for Olympians and Paralympians Act.
This is just another interesting factoid that ties into something Joe Rogan said a little while ago while commenting on the Olympics.
“The Olympics is a giant scam,” Rogan said. “There’s two things going on simultaneously, ok, you have the best athletes in the world participating in their disciplines. That’s happening and then on top of that, you have enormous amounts of money being made and none of it is going to the athletes. It is a giant scam.”
