15 Feb Indiana Olympians Don’t Have To Claim Winnings On Taxes
Indiana athletes helped the U.S. bring home 19 medals during last year’s Olympics. And, they won’t have to claim those winnings on their taxes.
Indiana is one of few states that provides Olympians with a special income tax exemption. Legislators passed a bill in 2014 that means Olympic medals and bonuses from the U.S. Olympic Committee aren’t subject to state income taxes.
Faegre Baker Daniels Tax Attorney Ben Blair says Congress passed a similar measure last year.
“So there’s a sort of overlap this year where Indiana Olympians could actually get it deducted twice,” Blair says.
For professional athletes like Pacers guard Paul George, it’s not a huge tax break. But Blair says it’s a decent perk for student athletes. Gold medal winners get a $25,000 bonus.
“That’s like having another $25,000 of income, which means there’s an additional $5,000 to $6,000 of tax to be paid over,” he says.
Blair says the tax exemption has little impact on the state’s bottom line.