Legislation that has been on the table since at least November of 2013, when I previously wrote about it, would exempt from treatment as taxable income the prizes that Olympic athletes receive for winning medals at the Games. We now learn that the legislation was passed by the Senate just last month. It has not, however, been passed by the House of Representatives.
As I said almost three years ago, if you think Olympic medalists are special, and therefore shouldn’t be treated the same as other prize winners, such as MVP award or Jeopardy winners, fine. Call your Congressperson. But don’t expect the Internal Revenue Code to become anything but more of an incomprehensible mess than it is now (if that’s even possible).