Every U.S. Olympian was promised a $200,000 payout, but how much they actually keep depends on where they live

All eyes are on Team USA as they compete at the Milan-Cortina Games, but win or lose, all U.S. Olympians and Paralympians are going home with a prize. 

Billionaire Ross Stevens has pledged $200,000 to every U.S. Olympian to help them gain some financial security after their careers end. 

More complicated than a $200,000 check 

The payout is more complicated than a $200,000 check arriving upon Team USA’s return from Milan. 

The athletes will get the first $100,000 at age 45 or 20 years after their first qualifying Olympic appearance, whichever comes later. Another $100,000 will be given as a guaranteed benefit for their families after they pass away. Athletes are eligible for the award for each Olympic Games they compete in, and the awards are funded until the 2032 Olympics in Brisbane, Australia.  

A key caveat of the gift is that the $100,000 Olympians will receive during their lifetime will be treated as taxable income, unlike the cash prizes given to medalists. Winners are awarded $37,500 for gold, $22,500 for silver, and $15,000 for bronze, and these winnings are exempt from federal tax, but don’t amount to a steady income. 

Depending on where the athletes live and how much they make, the $100,000 the income boost could amount to less than $50,000 after taxes, an analysis by Fortune found. 

The second $100,000 to be given after the athlete’s death could be subject to estate or gift taxes depending on the rest of their estate’s value, Nathan Goldman, an accounting professor at North Carolina State University, told Fortune. 

Income tax plays a major role

While there is no data on the average Olympian’s income, earnings vary widely depending on sponsorship and success. 

Many Olympians work regular day jobs. Alpine skier Keely Cashman works as a barista at her family’s coffee shop in Lake Tahoe, California. Tabitha Peterson, a curler, works as a pharmacist in Minnesota. Higher-earning Olympians can make millions off sponsorships each year. Forbes estimates that alpine skier Mikaela Shiffrin makes $7 million annually from her sponsorships with companies like Adidas, Land Rover, and Grubhub.

A Fortune analysis found that Olympians will receive an annual post-tax income boost ranging from $48,350 to $73,176 at today’s tax rates (with no 401 (k) or IRA contributions, no itemized deductions, and one personal exemption).

For this analysis, we chose three Olympic training hubs as locations: Truckee, Calif., Steamboat Springs, Colo., and Miami, Fla. California has a graduated income tax rate, ranging from 1% to $12.3%, the highest income tax rate of any state. Colorado has a flat income tax rate of 4.4%, and Florida is one of six states that has no income tax. 

We used today’s tax rates, including FICA, to estimate how much an $100,000 income increase would actually impact an athlete’s take-home income after taxes, using SmartAsset’s tax calculator. We selected a range of professions and salaries to show how the extra payout would affect people across different states and income levels.

The Barista 

A barista in the U.S. earns an average of $15.94 an hour, or about $33,160 a year, according to Indeed. With an extra $100,000, a barista in Florida would experience a $73,176 take home income boost. Their take-home income would increase by $68,776 in Colorado and by $65,354 in California. 

A former Olympian working as a barista living in Florida would pocket $4,400 more than a barista living in Colorado, and $7,822 more than one in California. 

The Pharmacist  

A pharmacist earns an average $141,108, according to Indeed. With an extra $100,000, a pharmacist in Florida would have a $69,766 take home income boost. In Colorado, their take home income would increase by $65,366 and by $60,466 in California. 

A former Olympian working as a pharmacist living in Florida would get $4,400 more than a pharmacist living in Colorado, and $9,300 more than one in California.

The Millionaire  

A millionaire earning $7 million annually in Florida would get a $60,650 take home income bump.  Their take home income would increase by $56,250 in Colorado and by just $48,350 in California. 

A millionaire living in Florida would get $4,400 more than a pharmacist living in Colorado, and $12,300 more than one in California.

Building financial security

Even if Olympians aren’t getting a full $100,000, the donation is a step toward long-term financial security to a career that often requires work and educational sacrifices to train for a chance of competing in the Olympics. Training comes with a financial burden as well, and athletes typically spend $12,000 yearly to compete to pursue their sports, according to a commission directed by Congress to study Olympic reformers. 

“I do not believe that financial insecurity should stop our nation’s elite athletes from breaking through to new frontiers of excellence,” said Stevens, the founder and CEO of Stone Ridge Holdings Group, who donated $100 million to the United States Olympic & Paralympic Committee. 

Athletes often rely on sponsorships for more stability, but they can dry up after they leave their sport, and opportunities can be limited for athletes whose sports aren’t big-ticket events. Even multi-gold medalists can struggle to build careers after the games.

“Even the Olympians that we know their names a little bit better, are still nowhere near the million dollars when they’re in these less popular sports as professionals,” said Goldman, the accounting professor. He estimates that the majority of Olympians earn between $150,000 and $200,000 in today’s money. 

Some Olympians have resorted to selling their medals to get by. Swimmer Ryan Lochte has sold nine of his 12 Olympic medals, including three last year, which reportedly sold for a combined $385,000. 

“I never swam for the gold medals,” Lochte wrote on Instagram. “Those medals? They were just the cherry on top of an incredible journey.” Locke told CNBC in 2019 that he went from making more than $1 million a year to $75,000 from one sponsorship. Former Olympic diver Greg Louganis sold two gold and one silver medals for nearly $431,000 last year because he “needed the money.”

This story was originally featured on Fortune.com