Obama signs Olympic medal tax-exemption bill

Obama signs Olympic medal tax-exemption bill
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It's official: Many Olympians and Paralympians won't owe federal income taxes on their medals and prize money from the Rio Games.

President Obama on Friday signed legislation to exempt from taxes the value of Olympic and Paralympic medals and prize money from the U.S. Olympic Committee. The tax exclusion does not apply for athletes with adjusted gross incomes of more than $1 million.

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Obama's signature comes after the bill was approved by the House and Senate last month. The tax exemption is effective for medals and prizes won in this year's Olympics and Paralympics in Rio de Janeiro, as well as in future games.

Obama hosted the U.S. Olympic and Paralympic athletes at the White House on Sept. 29. Obama did not mention the tax legislation in his opening remarks, but he noted that many athletes balance their training with other commitments.

"We admire your athleticism, but we also admire your character and your stick-to-it-ness," he said. "We know you don’t do this for the money or the fame.

"So many of you, you’re holding down a full-time job or you’re going to school at the same time, and then you’re trying to find time for your families, contribute to causes."