According to the Americans for Tax Reform, “medals and prize money are both subject to income tax.”  While the taxes on the medals are not that bad, it is the taxes that will be taken out of the Olympians’ tax bonuses that will be bad.  ”At a 35 percent income tax rate, bronze medalists will owe the IRS a total of $3,500, silver medalists will owe $5,250 and top finishers will be liable for $8,750.”