Michael Phelps Was Allegedly Expected to Pay around $55,000 for His Last Olympic Victories in 2016

Simone Biles and Michael Phelps need no formal introduction. Legends in their respective fields, the two are America’s most decorated athletes. Coming from diverse sporting backgrounds, the two have not just won games at the National level but also at the International level.

When the legends won their gold at the Olympics, the entire Nation celebrated their win. However, when the legends came back home, they were not just welcomed by cheering crowds, but also by hefty tax bills.

How much tax did Michael Phelps paid?

Generally, in other nations, the athletes are exempted from this. But in America, the rules states otherwise. Similar to how Americans are taxed on additional prize money, such as lottery prizes, such rewards are taxed as income. But there’s more; taxes and a value are also assigned to the medals. The cost of the components used to make the medals determines their value.

During 2016 gold medals, which are primarily made of silver with a gold plating, are worth about $600; silver medals, which are primarily made of copper, are worth about $300; and bronze medals, which are made of little more than copper, are worth around $4. Furthermore, it is also noteworthy that the players are expected to pay the tax on each of the medals. Thus, the amount stood higher for athletes like Michael Phelps and Simone Biles, who won multiple medals. Michael was expected to pay somewhere an amount of $55,000.

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In 2016. The U.S. Olympic Committee paid a financial incentive to all U.S. competitors who brought home a medal from the Rio Olympics. The winners of the gold medal were given? $25,000, the silver medalists $15,000, and the bronze medalists $10,000. Thus, Phelps was not the only one to pay the amount!

Heavy tax had to be paid by Simone Biles as well

Back in 2016, when Simone returned home with her Olympic medals, it was expected that she would have to pay a tax bill of close to $43,560. The estimate rolled out during that time was based on the then $2 million that she accumulated through her endorsement deals.

However, Biles is not alone in this. The same applied to all Olympic athletes who came back winning a medal. They all are subjected to tax liabilities. For the unversed, American Olympians must pay what is known as a ‘success tax’ on the prize money they receive from the Olympic Committee and the cost of their medals.

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Hence, it won’t be wrong to say that their medals came at a price. The price was not just their hard work, dedication, or years of practice, but also the heavy tax bills.