H.R. 7731: 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.

This bill proposes an amendment to the Internal Revenue Code of 1986 concerning the taxation of medals and prize money won in the Olympic Games and Paralympic Games. The main provision of the bill is the removal of the income limitation that currently applies to the exclusion of such earnings from gross income.

Key Provisions

• Exclusion from Gross Income: The bill states that the value of any medal awarded or any prize money received from the United States Olympic Committee as a result of competing in either the Olympic or Paralympic Games will not be considered taxable income.
• Current Limitations: At present, there are income limitations that affect how much prize money or value from medals can be excluded from gross income. The bill aims to eliminate this limitation entirely.
• Effective Date: The change is set to take effect for prizes and awards received after December 31, 2025.

Essentially, if this bill is enacted, athletes who compete and succeed in the Olympic and Paralympic Games will no longer have to count their prize money and medals as income for tax purposes, which may benefit them financially by potentially reducing their overall tax burden.

Relevant Companies

• None found