Monitary award from work considered income?
#1
03-17-18, 06:47 AM
Monitary award from work considered income?
Last year I received a monetary award from my employer. Would this be considered taxable income? I think it is, but on my tax program there is a blurb indicating gifts are not taxable. The award was given to me not for any specific reason (such as an invention or a specific action), but as an overall good employee.
#3
03-17-18, 07:06 AM
This was not a bonus. It was a special check issued (to four people in the organization) for exemplary character during the year. But I agree I think it's taxable and I will report it. However, in the check stub there is no mention of reporting this income to the IRS, nor was it issued on out typical payroll style check. Actually, it's stated as a voucher on the check stub.
#5
03-17-18, 07:37 AM
Group Moderator
It doesn't matter what they call it, money from an employer is always taxable. So are gifts if they are over a certain value. Maybe not a fruit basket (minor, under $25) but a paid trip, car, Rollex watch... all have value and are all just like a payment as far as the IRS is concerned.
Even if it's not on your W-2, they are breaking the law if they didn't include it, or you, if you don't report it.
Awards are still considered payment if they are cash.
Do any amount of research and it will back this up.
Here is one example.
https://budgeting.thenest.com/pays-taxes-employer-gives-gift-30923.html
Even if it's not on your W-2, they are breaking the law if they didn't include it, or you, if you don't report it.
Awards are still considered payment if they are cash.
Do any amount of research and it will back this up.
Here is one example.
https://budgeting.thenest.com/pays-taxes-employer-gives-gift-30923.html
#6
03-17-18, 07:45 AM
If it was included in the amount shown on your 2017 W-2, then it was Taxable Income.
So now realizing that fact and the fact that the check was issued on an internal voucher form, leads me to believe it's not taxable but an "expense" check issued to me and three other people.
#7
03-17-18, 07:50 AM
Or the company is leaving it to my discretion to report it or not.
I think I'm within the boundaries of a "reasonable" assumption or inadvertent mistake by not reporting it based on what we have just discussed. If I'm wrong then I think I will only be responsible to pay the difference as opposed to a penalty.
In the past I have made mistakes both for and against me and the IRS has only made the corrections and no penalty.
edit...the amount is under $1000
edit #2...On another note...Interest income (1099 forms) if under a $1.00 will not be sent from the bank and is not needed to be reported?
I think I'm within the boundaries of a "reasonable" assumption or inadvertent mistake by not reporting it based on what we have just discussed. If I'm wrong then I think I will only be responsible to pay the difference as opposed to a penalty.
In the past I have made mistakes both for and against me and the IRS has only made the corrections and no penalty.
edit...the amount is under $1000
edit #2...On another note...Interest income (1099 forms) if under a $1.00 will not be sent from the bank and is not needed to be reported?
#8
03-19-18, 11:30 AM
Group Moderator
All I know is such amounts get taxes taken out of them and end up on our W2s here.
Unless it was an actual reimbursement for an expense, I think X is right.
Unless it was an actual reimbursement for an expense, I think X is right.
