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U.S. Athletes With Income Under $1 Million Can Exclude Olympic Medals From Federal Taxes

A tax rule change exempts Olympic prizes from federal income tax for qualifying athletes, though state-level taxation may still apply.

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Terms & Concepts
  • Adjusted Gross Income (AGI): A measure of income used by the U.S. Internal Revenue Service to determine taxable income, calculated as gross income minus certain deductions.
  • Federal Income Tax: A tax levied by the U.S. government on annual earnings of individuals, corporations, trusts, and other entities.
  • State Taxes: Taxes imposed by individual U.S. states, which may differ from federal tax rules and can apply to incomes or awards.