Problem is the lump sum and it is taxed as thought you make that much every week. If you have enough money to live on it’s ok as it will come back to you in your return. If you are poor, and they tax you to the max after a medal, it hurts waiting a year to get it back.
No, I don’t think that’s so.
The athletes are receiving the money in a foreign country from a non-U.S. organization. The non-U.S. organization would have no reporting requirement to the U.S. nor any withholding requirement.
Yes, the money is taxable to the athlete, but they will be required to pay estimated taxes, if necessary. Some of the athletes make tons of money through endorsements, but many are just amateurs with minimal income. After off-setting expenses, a lot of the athletes won’t owe any additional taxes.
Problem is the lump sum and it is taxed as thought you make that much every week.
I think you mean (partially) withheld as though you make that much every week.
(BTW, an Olympic medal isn't really "income", since it is not an item that is intended to be exchanged for other products or services, but rather is essentially a souvenir by which the winner can remember his or her moment of excellence for a lifetime.)
We have Franklin D. Roosevelt and his administration to "thank" for introducing the country to income tax withholding, and Woodrow Wilson's for introducing the income tax to begin with.
Wonder if the IRS is so diligent about other "amateur" athletes.
"La Taxa Nostra"? Would be laughing if wasn't so true.