Michael Phelps will have to settle a large tax bill before he can celebrate being the most decorated Olympian of all time. The wildly successful American swimmer will return from the Rio Olympics 2016 with some hefty tax obligations from his winnings and the value of the precious metals that he has accumulated.
According to Give Me Sport, Michael Phelps will owe an estimated amount of US$55,000. The International Olympic Committee reportedly awards US$25,000 to gold medal winners, while silver and bronze medalists receive US$15,000 and US$10,000, respectively. Moreover, even the actual value of the medals are taxable.
In the Rio Olympics 2016, Michael Phelps has been making the headlines due to an impressive medal haul. He won five gold medals and one silver. This alone brings his winnings up to US$140,000. With each gold-plated medal valued at approximately US$600, Phelps is taking home a large taxable amount.
This will come as no surprise for Phelps, who has been through this before. He is now the most decorated Olympian of all time, after winning a total of 28 medals in five editions of the Olympic Games. Out of the 28, 23 are gold medals. He started competing when he was only 15 years old back in the 2000 Sydney Olympics. Nearly two decades later, he is hanging up his goggles as a true sporting icon. He will be officially retiring after Rio, after establishing himself as a swimming legend.
Other successful athletes will be coming home to varying taxation laws in their respective countries. American gymnast Simone Biles will be one of the others who will be facing a large bill. Just behind Phelps in her Rio Olympics 2016 medal haul, her five gold medals and one bronze has earned her US$110,000 in winnings and approximately just over US$40,000 in taxes.