Michael Phelps Net Worth: Swimmer May Owe IRS $55,000 For Olympic Medals [VIDEO]

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Michael Phelps may have won big at the 2016 Olympic Games in Rio, but he's also going to be paying big.

Following his medal wins, a report claims the swimmer will be taxed a reported $55,000 at the end of the year. Luckily, the amount won't do much damage to his alleged net worth of $55 million.

"The United States Olympic Committee awards Olympic athletes who place in the top spots a bonus— $25,000 for gold, $15,000 for silver and $10,000 for bronze — that, like any other prize earnings from a jackpot hit to a Nobel Prize, is considered taxable income by the IRS," Time Magazine explained to readers.

"This 'victory tax' can claim a big piece of an athlete’s prize," the outlet continued. "For an Olympian in the top tax rate bracket of 39.6%, which includes the nation’s highest earners, the bill totals $9,900 for winning a gold medal, according to Americans for Tax Reform. Nabbing a silver medal triggers a $5,940 tax hit and for a bronze medal it is $3,960."

Following his appearance at the 2016 Olympic Games in Rio, Phelps is retiring from swimming and planning to focus on his future with his future wife, Nicole Johnson, and son Boomer.

During an appearance on the Today show earlier this week, Phelps said he plans to focus on “build[ing] a family” with Johnson, according to a report by Gossip Cop. “This is the part of my life where I get to start this whole new chapter."

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