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President Obama ends Olympic ‘victory tax’

President And Mrs. Obama Welcome 2016 U.S. Olympians To The White House

WASHINGTON, DC - SEPTEMBER 29: U.S. President Barack Obam (R) is presented with a Team USA surfboard by Olympian Simone Biles (2nd L) as first lady Michelle Obama (L) looks on during an East Room event at the White House September 29, 2016 in Washington, DC. President Obama and first lady Michelle Obama welcome the 2016 U.S. Olympic and Paralympic teams to the White House to honor their participation and success in the Rio Olympic Games this year. (Photo by Alex Wong/Getty Images)

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WASHINGTON (AP) -- America’s Olympic athletes will no longer pay a so-called victory tax under a bill President Barack Obama has signed into law.

The IRS will now be prohibited from taxing most medals or other prizes awarded to U.S. Olympians.

The U.S. Olympic Committee awards cash prizes to medalists, ranging from $25,000 for gold to $10,000 for bronze. The money has been considered earned income, thus making it subject to what some lawmakers have called the “victory tax.”

The measure would, however, permit taxes on high-profile Olympians such as multiple gold medal-winning swimmer Michael Phelps.

MORE: President Obama to female Olympians: ‘Y’all crushed it’ (video)