I got a $125 gift card from my boss. 4 weeks later I get taxed $50 for it on my pay stub.

1/19/2009 9:27:42 AM

it's gift income

if they didnt tax you on it, it'd be tax fraud

seems to me, that they're doing the not stupid thing by doing so

1/19/2009 9:28:50 AM

a month later? fuck that noise. Do it when you give it out.

1/19/2009 9:29:30 AM

makes machines that kill people

1/19/2009 9:30:23 AM

you could make a case that the value of the gift is lower now after a few weeks than when you got it due to inflation, and getting taxed on it later on in time is more beneficial than doing it upon receipt

i'm just sayin

1/19/2009 9:30:47 AM

at least you got a bonus

1/19/2009 9:30:54 AM

at least you got a bonus

They'd probably hand out Sharper Image gift cards here.

[Edited on January 19, 2009 at 9:34 AM. Reason : -]

1/19/2009 9:33:39 AM

Haha I have gotten bonuses in cash before and gift cards and never been taxed. Sucks for you man.

[Edited on January 19, 2009 at 9:34 AM. Reason : ]

1/19/2009 9:34:17 AM

my employer makes me fold their underwear. They also leave all their dishes and food out that they had during the weekend and let me clean it up on monday.

1/19/2009 9:35:19 AM

I always get taxed on bonuses, but this is the first time they taxed us on a gift card.

Worst thing they did was about 3 months ago. I handed in a reimbursement form, and they charged me and taxed me on it, instead of reimbursing me.

1/19/2009 9:41:33 AM

fires me

1/19/2009 9:42:24 AM

employs you

1/19/2009 9:54:16 AM

i had to fill out the forms to tax employees on their holiday gift cards once. it was a pain in the ass

1/19/2009 10:04:13 AM

70 > 0

1/19/2009 10:11:30 AM

Quote :

"Worst thing they did was about 3 months ago. I handed in a reimbursement form, and they charged me and taxed me on it, instead of reimbursing me."

now thats bullshit...is that even legal?

1/19/2009 10:13:41 AM

I had to go point out their "mistake." After enough bitching they agreed to cut a check by the end of the day for my reimbursement. I then had to explain they still needed to reimburse me for the money they charged me. It took a while to get her to understand they owed me more now.

1/19/2009 10:27:03 AM

no one trains associates with technical details, so you only learn by watching other people get fired for stuff

I'm Big Business and i approved this message.

[Edited on January 19, 2009 at 10:29 AM. Reason : oh and scheduling me hours during the only time i have classes.]

[Edited on January 19, 2009 at 10:29 AM. Reason : those fucks can NOT read a schedule]

1/19/2009 10:28:25 AM

doesnt know my name

1/19/2009 10:32:24 AM

pay me $10 per diem?

1/19/2009 10:34:19 AM

woohoo to the double tax

1/19/2009 10:53:48 AM

makes me work on MLK day

1/19/2009 11:18:48 AM

now that is racist

I'm Big Business and i approved this message.

1/19/2009 11:19:34 AM

Quote :

"it's gift income if they didnt tax you on it, it'd be tax fraud seems to me, that they're doing the not stupid thing by doing so"

uhh no.

gifts under $12,000 are not taxable.

1/19/2009 11:29:02 AM

Quote :

"Gifts from certain parties will always be taxed for U.S. Federal income tax purposes. Under Internal Revenue Code section 102(c)[3], gifts transferred by or for an employer to, or for the benefit of, an employee cannot be excluded from the gross income of the employee for Federal income tax purposes"

1/19/2009 11:35:30 AM

First, the exemption is now 13,000 for the gift tax.

Second, if your employer gives you cash or a cash equivalent, there's a presumption that it is part of your total compensation, and is just taxed as ordinary income. The tax that came out wasn't gift tax, it was income tax. Still shitty though.

1/19/2009 11:40:27 AM

^^^haha, TWW advice FTW!

^Unless it's under $25.00.

[Edited on January 19, 2009 at 11:46 AM. Reason : x]

1/19/2009 11:45:27 AM

^ Correct. If it would be burdensome for the employer to have to figure out taxes on whatever they give you because the item is not very valuable ($25) the IRS doesn't care about taxes on it.

1/19/2009 11:52:24 AM

is that $25/gift or per year--maybe next year he should ask for 5*$25 gift cards

1/19/2009 11:59:37 AM

my christmas bonus was a $50 gift certificate to our store

but i can buy anything we sell directly from the manufacturers at 30% below wholesale so long as i pay said manufacturer directly

making said gift certificate practically useless

1/19/2009 12:01:52 PM

gift card + ebay = profit

1/19/2009 12:03:04 PM

also, the internets tell me:

Quote :

"In IRS Information Notice 2008-23 (June 27, 2008), the IRS indicated that a gift amount of $50 was used for administrative convenience. The IRS noted that there was no set dollar limit on de minimis fringe benefits. The $25 limit is a long-standing rule of thumb that comes from the limit for income tax deductions for gifts made by businesses, often for suppliers and customers. The Information notice did not actually endorse the $50 limit as an acceptable fringe benefit amount, and thus employers should be cautious about using an amount much higher than $25. Nonetheless, the Information notice is useful in reiterating that there is no bright-line rule as to what amount constitutes a de minimis fringe benefit, and employers should use their best judgment when giving out gifts."

1/19/2009 12:09:36 PM

The exemption for small items excludes cash transfers. I might be wrong, but I'm pretty sure the IRS counts gift cards the same as cash. Your best bet is if the employer just gives you an item of small value rather than any cash or gift card.

1/19/2009 12:11:58 PM

or pachinko tokens

1/19/2009 12:21:51 PM

Quote :

"Second, if your employer gives you cash or a cash equivalent, there's a presumption that it is part of your total compensation, and is just taxed as ordinary income. The tax that came out wasn't gift tax, it was income tax. Still shitty though. "

what if your employer is your father, and he gives you a christmas present?

1/19/2009 12:26:21 PM

sometimes my boss takes 3-4 hrs to return a phone call for i-cannot-proceed-without-your-response type situations, so i lay back and take a nap and collect 17.50/hr

does it bother me? sometimes if im in a rush to get somewhere, but its more just a stupid business decision

usually its because he's at home on a sunday or holiday, but since we're all out in the field working those days they need to be too

1/19/2009 1:34:15 PM

took my retirement match for 365 days. to invest in a fucking death ray or something

1/19/2009 2:01:56 PM

ok i'm misinterpreting the situation here


if your boss gives you a gift FROM HIS OWN POCKET, then it is a gift and as long as it's under $13k (ur right it changed this year) then it is not taxable


if your boss gives you a gift from the company's pocket, i.e. a christmas bonus, etc., then yes, that's income.

I thought the op meant his boss used his own money.

and btw a $125 gift card and he doesn't even pay for it himself?? What a cheapskate.

1/19/2009 2:27:10 PM