Olympic medals

A subtraction is allowed to any individual who wins a medal while competing for the United States of America in either the Olympic Games or the Paralympic Games, so long as the individual’s adjusted gross income for the tax year does not exceed $1 million ($500,000 if married filing separately).

The value of any medal won while competing for the U.S. at either the Olympic Games or the Paralympic Games is subtracted from federal taxable income, regardless of whether or not the medal’s monetary value is included in federal taxable income.

In general, prize money awarded by the U.S. Olympic Committee to medal winners is excluded from federal taxable income on the winner’s federal income tax return and no additional Colorado subtraction is allowed for prize money. However, if a medal winner’s federal taxable income includes any monetary award given for winning the medal by the U.S. Olympic Committee or any sport-specific national governing body or Paralympic sport organization, a subtraction is allowed on the Colorado return for that monetary award.

The subtraction is not allowed for any endorsement income or nonmonetary benefits.