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Navigating tax rules for athletes and summer games spectators

3 min read


3 min read


As the excitement of the 2024 Summer Games captures the world’s attention, athletes and spectators alike may find themselves facing various tax implications related to their involvement in the Games. Here, we address some common questions regarding travel expenses, winnings from medals, and gambling wins and losses. 

Can athletes write off travel or other expenses involved in competing? 

Yes, athletes can deduct expenses for training and travel, but only if they are ordinary and necessary expenses required for their trade or business. Athletes performing on a world stage often establish a business entity to manage their endorsement money and other payments rather than working as employees of another business. This business structure can make it easier to qualify for deductions, provided they meet all requirements. Typically, elite athletes can deduct expenses such as: 

  • Training Costs: Expenses related to coaching, gym memberships, and specialized training programs. 
  • Equipment: The cost of sports equipment, uniforms, and maintenance. 
  • Travel: Travel expenses for competitions, including airfare, lodging, and meals. 

These deductions are crucial for athletes to manage their finances effectively, especially given the high costs associated with training and competing at an elite level. 

Are there taxes on gold medals? 

Winnings from medals or prizes awarded to U.S. athletes by the U.S. Olympic Committee enjoy a special tax exclusion. Under section 74(d)(1) of the Internal Revenue Code, the value of gold, silver, and bronze medals, along with prize money, is excluded from the athlete’s U.S. gross income. However, this exclusion only applies to athletes whose gross income does not exceed $1 million annually. 

It’s important to note that other forms of income received by Summer Games athletes, such as sponsorship money and individual payments, are taxable. These are subject to the regular tax rules for self-employed individuals or the specific tax rules based on the athlete’s business structure. 

What are the tax implications of gambling wins and losses for spectators betting on the summer games? 

For spectators who enjoy placing bets on sporting events, it’s essential to understand the tax implications of gambling wins and losses

  • Gambling Wins: Money won from betting on sports is taxable. Depending on the amount won, the winner may receive a Form W-2G, which reports their winnings. For amounts over $5,000, the gambling institution typically withholds 24% automatically. 
  • Gambling Losses: Gambling losses can be deducted, but only if you itemize your tax return. Additionally, the losses deducted cannot exceed the amount of gambling wins. 

Understanding these rules can help spectators manage their gambling activities more effectively and ensure they comply with tax regulations.

Get help navigating your taxes

If you have specific questions or need personalized help, it’s always a good idea to consult with an H&R Block tax professional who can provide guidance tailored to your unique situation. For more information about H&R Block, visit HRBlock.com

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