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Congress moves to block ‘victory tax’ on Olympic athletes

Water Polo - Olympics: Day 14

RIO DE JANEIRO, BRAZIL - AUGUST 19: Adam Krikorian, coach of the United States, has gold medals placed over his head after winning the Women’s Water Polo Gold Medal Classification match between the United States and Italy on Day 14 of the Rio 2016 Olympic Games at the Olympic Aquatics Stadium on August 19, 2016 in Rio de Janeiro, Brazil. (Photo by Matthias Hangst/Getty Images)

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WASHINGTON (AP) -- A bill moving forward in Congress would block the IRS from taxing most medals or other prizes awarded to U.S. Olympians.

The U.S. Olympic Committee awards cash prizes to Olympic medal winners: $25,000 for gold, $15,000 for silver and $10,000 for bronze. Because the money is considered earned income, it is taxed - a practice some lawmakers refer to the “victory tax.”

The Senate passed legislation to make the winnings tax-free just before the Summer Olympics. The House approved a similar bill on Thursday, 415-1.

The House bill would allow Olympic taxes on high-profile athletes such as swimmer Michael Phelps who earn more than $1 million a year.

The bill now goes back to the Senate.

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