cbs3_blue-on-white_2013 Philly_KYW_new Philly_94WIP_new CBS Sports Radio 610 Philly_WPHT_new

Taxing Corporate Gifts

101357494
feldman_amy

Reporting Amy Feldman

By Amy E. Feldman

PHILADELPHIA (CBS) - If your company is thinking of giving gift certificates this year instead of another year of junky promotional items with the company’s logo or a holiday turkey as a holiday gift, scrooge and the IRS have something to tell you.

Employers may have gotten the message: a t-shirt with the company’s logo or a turkey that the HR department bought a week ago is not really appreciated. So many companies that used to give out items like turkeys or t-shirts to their employees have decided just to give supermarket or other gift cards instead.

Now you certainly don’t want to look a gift horse in the mouth. But financially, a gift turkey would be better than a gift certificate. Why? Because what the IRS calls a “deminimis” gift – an item like a holiday turkey – does not have to be reported on your taxes. But if your employer gives you cash or a gift certificate no matter how small, you have to include the value of that gift on your tax return as extra salary.

So, while it seems like something of a throwback for a company to actually pass out the turkeys, at least you’ll be eating on the company’s money, rather than having the IRS take a bite out of yours.

Listen Live!

Follow CBS Philly

Like us on foursquare

Now on CBS Philly

nowon lovearts1 Now on CBS Philly nowon kidcast 03161 Now on CBS Philly nowon dec12 rac Now on CBS Philly  Now on CBS Philly nowon 3onyourside Now on CBS Philly nowon deal Now on CBS Philly dunkin homepage tile Now on CBS Philly  Now on CBS Philly