Holiday gifts are taxable

Cover Image
Photo credit Dreamstime
By KYW Newsradio 1060
By Amy E. Feldman, Judge Technology Solutions
PHILADELPHIA (KYW Newsradio) — What did your boss give you for a holiday gift? A big tax bill?

Fortune magazine posted a survey from Snappy, an employee rewards program, of the 15 most extravagant gifts employers gave their employees in 2018, including a Caribbean cruise for two, a Gucci backpack, a Thailand culinary experience and vacation, and a four-person sauna. 

Beats the heck out of the polo shirt with the company's logo you got, doesn't it? 

Maybe, but those people who left on that free Caribbean cruise, courtesy of their employer, with nothing but a bikini and a pair of flip flops packed in their Gucci backpack, are now coming back with a sun burn to a big tax bill.  

Any kind of cash gift, or any travel or gifts worth more than $75, are considered taxable income, unlike gifts of minimal value like a holiday turkey, which the IRS calls a "de minimis" gift that doesn't have to be reported. 

Or thought about ever again, for that matter.  

You need to remember to get the fair market value of the gift you received when you file your taxes, so your next vacation doesn't involve a trip to tax court.