Black Friday

iVillage Member
Registered: 11-26-2013
Black Friday
876
Fri, 11-29-2013 - 12:24pm

1. Did you do any shopping yesterday or today?

2. Do you have any leftovers? What is your favorite?

3. Do you have a budget for holiday gifts?

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iVillage Member
Registered: 11-26-2013
Wed, 12-04-2013 - 1:41pm

Give aways are not bonuses, winning something in a giveaway doesn't equal receiving a bonus.  I'm not sure I'm following your change of subject here, what does a giveaway have to do with a bonus or gift?

It doesn't as I just asked what you considered a gift card or anything else that is given to an employer to an employee throughout the year that is NOT a bonus check. 

iVillage Member
Registered: 06-27-1998
Wed, 12-04-2013 - 1:52pm

savcal2011 wrote:
<p><blockquote class="quote-msg quote-nest-1 odd"><div class="quote-author"><em class="placeholder">turkeyday</em> wrote:</div>&lt;p&gt;I mean any gift that is given to us (that is not a taxed check) is taken care of by the employER and nothing has to be filed by the employEE. Just like my company gives away cars for gifts a couple times a year, a few of them. The employEE who wins one does NOT have to pay ONE dime for that car as well as the other people who win money prizes. Everything is taken care of by the employER.&lt;/p&gt;</blockquote></p><p>That's the way it should be ... but unfortunately, not all companies know and follow the rules. </p>

The person or group that is giving something away or involved in a raffle are not liable for the taxes, the person winning the prize is liable for the taxes I believe.  If this situation falls under the gambling winning/loss IRS rules.  Now if it is a truly a gift, then the tax would be on the giver but you run into conflicting issues when a company gives a gift to an employee because it can be considered a fringe benefit, which circles around again to taxes.

Regardless this is not the same as a bonus, cash in an envelope or a gift card...which was the topic up until this change in subject.

PumpkinAngel

iVillage Member
Registered: 05-13-2009
Wed, 12-04-2013 - 1:55pm

turkeyday wrote:
<p>I mean any gift that is given to us (that is not a taxed check) is taken care of by the employER and nothing has to be filed by the employEE. Just like my company gives away cars for gifts a couple times a year, a few of them. The employEE who wins one does NOT have to pay ONE dime for that car as well as the other people who win money prizes. Everything is taken care of by the employER.</p>

You would be wrong about that according the the IRS

http://www.irs.gov/pub/irs-pdf/p17.pdf (page 46)

Bonuses and awards. Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vaca-tion trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you.

Employee achievement award. If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay.

iVillage Member
Registered: 06-27-1998
Wed, 12-04-2013 - 1:55pm

turkeyday wrote:
<p><span style="font-size:13px; text-align:left">Give aways are not bonuses, winning something in a giveaway doesn't equal receiving a bonus.  I'm not sure I'm following your change of subject here, what does a giveaway have to do with a bonus or gift?</span></p><p><strong><span style="font-size:13px; text-align:left">It doesn't as I just asked what you considered a gift card or anything else that is given to an employer to an employee throughout the year that is NOT a bonus check. </span></strong></p>

Which I answered, almost any gift given to an employee from a company falls under the fringe benefit rules. 

PumpkinAngel

iVillage Member
Registered: 12-04-2013
Wed, 12-04-2013 - 2:08pm

The person or group that is giving something away or involved in a raffle are not liable for the taxes, the person winning the prize is liable for the taxes I believe.If this situation falls under the gambling winning/loss IRS rules.  Now if it is a truly a gift, then the tax would be on the giver but you run into conflicting issues when a company gives a gift to an employee because it can be considered a fringe benefit, which circles around again to taxes.

Not true in all situations. I won a car and I was liable. The cars they give out at my job, the winner is not liable.

Regardless this is not the same as a bonus, cash in an envelope or a gift card...which was the topic up until this change in subject.
Nope it is not. That is why I asked what everyone considered this separate situation.
iVillage Member
Registered: 12-04-2013
Wed, 12-04-2013 - 2:09pm

Bonuses and awards. Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vaca-tion trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you.

Exactly and that is what is done.

Employee achievement award. If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay.

Exactly.

iVillage Member
Registered: 06-27-1998
Wed, 12-04-2013 - 2:12pm

<<Not true in all situations. I won a car and I was liable. The cars they give out at my job, the winner is not liable.>>

Can you provide an IRS ruling that exempts the receiver of the car from taxes owed on the gift from their employer?  I'm interested in the tax loophole they have found.


PumpkinAngel

iVillage Member
Registered: 12-04-2013
Wed, 12-04-2013 - 2:13pm

<<Not true in all situations. I won a car and I was liable. The cars they give out at my job, the winner is not liable.>>

Can you provide an IRS ruling that exempts the receiver of the car from taxes owed on the gift from their employer?  I'm interested in the tax loophole they have found.

The employer is paying the taxes. You have never heard of that? 

iVillage Member
Registered: 05-13-2009
Wed, 12-04-2013 - 2:17pm

turrkeyday wrote:
<p style="font-size:13px; text-align:left">Bonuses and awards. Bonuses or awards you receive for outstanding work are included in your income and should be shown on your Form W-2. These include prizes such as vaca-tion trips for meeting sales goals. If the prize or award you receive is goods or services, you must include the fair market value of the goods or services in your income. However, if your employer merely promises to pay you a bonus or award at some future time, it is not taxable until you receive it or it is made available to you.</p><p style="font-size:13px; text-align:left"><strong>Exactly and that is what is done.</strong></p><p style="font-size:13px; text-align:left">Employee achievement award. If you receive tangible personal property (other than cash, a gift certificate, or an equivalent item) as an award for length of service or safety achievement, you generally can exclude its value from your income. However, the amount you can exclude is limited to your employer's cost and cannot be more than $1,600 ($400 for awards that are not qualified plan awards) for all such awards you receive during the year. Your employer can tell you whether your award is a qualified plan award. Your employer must make the award as part of a meaningful presentation, under conditions and circumstances that do not create a significant likelihood of it being disguised pay.</p><p style="font-size:13px; text-align:left"><strong>Exactly.</strong></p>

Huh? This proves the exact opposite of what you said. Bonuses and awards are treated as income and you are required to pay taxes as ordinary income.

Other gifts do have some exemption limits, but they are no where near the value of a car.

iVillage Member
Registered: 05-13-2009
Wed, 12-04-2013 - 2:18pm

turrkeyday wrote:
<p style="font-size:13px; text-align:left">&lt;&lt;<strong>Not true in all situations. I won a car and I was liable. The cars they give out at my job, the winner is not liable.&gt;&gt;</strong></p><p style="font-size:13px; text-align:left">Can you provide an IRS ruling that exempts the receiver of the car from taxes owed on the gift from their employer?  I'm interested in the tax loophole they have found.</p><p style="font-size:13px; text-align:left"><strong>The employer is paying the taxes. You have never heard of that? </strong></p><div></div>

Not legally...

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