Asked by Chelsea Valencia on Jun 05, 2024
Verified
If an employee receives a prize or award from his or her employer,the award is included in W-2 income.
Prize or Award
Monetary or material value received as a result of winning a contest or receiving an accolade, which may be taxable income.
W-2 Income
Earnings reported through a Form W-2, showing the total income and taxes withheld from an employee's paycheck by their employer.
- Comprehend the tax consequences associated with employee benefits, gifts, and awards as they pertain to gross income.
Verified Answer
HH
Hannah HeimosJun 10, 2024
Final Answer :
True
Explanation :
Any prizes or awards received by an employee for their work are considered taxable income and should be included on their W-2 form. This includes cash prizes, gift cards, and other non-cash items such as trips or merchandise.
Learning Objectives
- Comprehend the tax consequences associated with employee benefits, gifts, and awards as they pertain to gross income.