Does one have to pay incoem tax on company awards?

A

AmericanWannabe

Registered Users (C)
My company just issued awards to many employees
and I happen to be one recipient. But unlike bonus,
the award is in the form of a gift check and I just cahed it.
So it won't be in the W-2. Is it taxable?

And if the recipient happen to be a H1B worker,
would the company violate immigration law?
One can argue award is not conpensation
for serivice but gifts instead? But such excuse is obviosly lame because why would a company give gifts to its employees if
employees does not work there?
 
Originally posted by AmericanWannabe
My company just issued awards to many employees
and I happen to be one recipient. But unlike bonus,
the award is in the form of a gift check and I just cahed it.
So it won't be in the W-2. Is it taxable?

And if the recipient happen to be a H1B worker,
would the company violate immigration law?
One can argue award is not conpensation
for serivice but gifts instead? But such excuse is obviosly lame because why would a company give gifts to its employees if
employees does not work there?
Click to expand...

You should report the value of gift check as "miscellaneous income not reported to IRS" in (line 21 of form 1040 of) your tax return and pay taxes on it. It is not a violation of immigration law.
 
The 1040 instruction booklet tip for Line 21 says:
"Do not report any nontaxable amounts on Line 21, such as
any advance child tax credit peymant you received,child support;
mone or property that was inherited,willed to you, or RECEIVED as a GIFT"
 
Originally posted by AmericanWannabe
The 1040 instruction booklet tip for Line 21 says:
"Do not report any nontaxable amounts on Line 21, such as
any advance child tax credit peymant you received,child support;
mone or property that was inherited,willed to you, or RECEIVED as a GIFT"
Click to expand...

Check and see if the amount shows up as "misc bonus" on you next pay stub. If it does, then it will show up on next year's W-2. If the amount doesn't show up on a W-2 or 1099 next year, then the amount was never reported to the IRS. You can use that information as you wish. Technically, you are supposed to report it.

Brian
 
It is American express gift check. So it has nothing to do with
paystub. It is just like gift check given to me my me employer
when i had a baby.
 
Originally posted by AmericanWannabe
The 1040 instruction booklet tip for Line 21 says:
"Do not report any nontaxable amounts on Line 21, such as
any advance child tax credit peymant you received,child support;
mone or property that was inherited,willed to you, or RECEIVED as a GIFT"
Click to expand...


The instruction is do not report "non taxable" income. What the original poster described is definitely taxable.
 
You must log in or register to reply here.
Top