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volare
Senior Boarder
Posts:501

Re: Need help making a decision

#94046 2 years, 9 months ago
i vote iPad....also, double-check with your tax professional, but as I understand it, Uncle Sam expects you to pay the taxes on either the cash or the cash-value of the gift.

edit: just checked this out...seems like non-cash gifts up to $500 are tax-free but the cash gift would be considered income.
The Sailor, coming out again, the lady fairly leapt at him.
That's how it stands today. You decide if he was wise.
Last Edit: 2 years, 9 months ago by volare. Reason: update
amusingdeva
Platinum Boarder
Posts:2251

Re: Need help making a decision

#94047 2 years, 9 months ago
Wow - you still get holiday gifts? Our gift this year is that we still have a job....

The joys of working for corporate america.
The following user(s) said Thank You: Terrapin Sedation
gr8fuljen
Expert Boarder
Posts:616

Re: Need help making a decision

#94049 2 years, 9 months ago
I know right? I was shocked to get the email. This is a new company.. this is its second year so we must be doing well..
I dont know that everyone gets gifts.. this was offered to the few on my contract.
gr8fuljen
Expert Boarder
Posts:616

Re: Need help making a decision

#94050 2 years, 9 months ago
volare wrote:
i vote iPad....also, double-check with your tax professional, but as I understand it, Uncle Sam expects you to pay the taxes on either the cash or the cash-value of the gift.

edit: just checked this out...seems like non-cash gifts up to $500 are tax-free but the cash gift would be considered income.


is a gift card considered cash? I didn't know I would have to claim it.. thanks for the info
scar1et_f1re
Platinum Boarder
Posts:4900
R U Kind?

Re: Need help making a decision

#94060 2 years, 9 months ago
volare wrote:
i vote iPad....also, double-check with your tax professional, but as I understand it, Uncle Sam expects you to pay the taxes on either the cash or the cash-value of the gift.

edit: just checked this out...seems like non-cash gifts up to $500 are tax-free but the cash gift would be considered income.


Yes, employers cannot give "cash" to an employee and say it's a gift. They can give de-minimus gifts that would not be taxable. As a practical matter, gift cards are generally not considered income (but that can very from company to company). It's only when the employer writes a physical check to the employee that the "gift" would be taxable (only other option is that it's a loan the employee would need to repay, but that's only if scrooge is giving the gift).

Either way, you take the gift and if you are taxed, you are still better off than if you didn't receive the gift.
FFF! Family is Forever!!!

May God bless and keep you always
May your wishes all come true
May you always do for others
And let others do for you
SunshineSue
Platinum Boarder
Posts:31717
Life is sweeter for this!

Re: Need help making a decision

#94063 2 years, 9 months ago
scar1et_f1re wrote:
volare wrote:
i vote iPad....also, double-check with your tax professional, but as I understand it, Uncle Sam expects you to pay the taxes on either the cash or the cash-value of the gift.

edit: just checked this out...seems like non-cash gifts up to $500 are tax-free but the cash gift would be considered income.


Yes, employers cannot give "cash" to an employee and say it's a gift. They can give de-minimus gifts that would not be taxable. As a practical matter, gift cards are generally not considered income (but that can very from company to company). It's only when the employer writes a physical check to the employee that the "gift" would be taxable (only other option is that it's a loan the employee would need to repay, but that's only if scrooge is giving the gift).

Either way, you take the gift and if you are taxed, you are still better off than if you didn't receive the gift.

It's so handy to have a tax accountant on the board, I love it!

Enjoy the ipad, Jen!!
Last Edit: 2 years, 9 months ago by SunshineSue.
gr8fuljen
Expert Boarder
Posts:616

Re: Need help making a decision

#94065 2 years, 9 months ago
learn something new every day.. Thanks again
83msg1sttyme
Platinum Boarder
Posts:5732

Re: Need help making a decision

#94067 2 years, 9 months ago
my old job gave us a weeks pay as a bonus,it was taxed like any other check
If i told ya all that went down,it would burn off both your ears
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