# Do gifts from work get taxed? **URL:** \ **Category:** Factual Questions\ **Created:** [December 3, 2018, 4:56pm UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504 "2018-12-03T16:56:39Z")\ **Posts on this page:** 10\ **Page:** 2
**Author:** ![mixdenny](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mixdenny/32/2962_2.png) [@mixdenny](https://boards.straightdope.com/u/mixdenny)\ **Post date:** [December 4, 2018, 11:05pm UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/21 "2018-12-04T23:05:02Z")
This reminds me of the way some game shows used to be, Wheel of Fortune I think was a one example. Contestants would earn show “dollars” good for selecting items from various rooms if they won. I wonder how happy many of the winners were at the end of the year when they realized room the room full of bathroom products like towels and soaps “worth” $1000 was going to cost them like $300 in additional taxes. If they had simply been given the money they would never have spent it on such junk. Dennis ---
**Author:** ![AlsoNamedBort](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/alsonamedbort/32/3213_2.png) [@AlsoNamedBort](https://boards.straightdope.com/u/AlsoNamedBort)\ **Post date:** [December 4, 2018, 11:24pm UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/22 "2018-12-04T23:24:03Z")
> [@CookingWithGas](#): > > Do you mean that the \*tax \*is $40, or that the stated value of the T-shirts is $40 for determining the tax? I imagine it’s the second, because otherwise how would they know they paid $40 in tax for these shirts. I’m guessing they get a line item on their check showing them getting “paid” $40, and then that amount get deducted back post-tax. ---
**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\ **Post date:** [December 4, 2018, 11:33pm UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/23 "2018-12-04T23:33:46Z")
Winnings on game shows and lotteries are tax-free over here. Win £20million and you get it all to spend on booze, drugs and sex or waste it if you want. ---
**Author:** ![Iggins](https://avatars.discourse-cdn.com/v4/letter/i/b9e5f3/32.png) [@Iggins](https://boards.straightdope.com/u/Iggins)\ **Post date:** [December 5, 2018, 1:24am UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/24 "2018-12-05T01:24:12Z")
Our company used to give out $50ish gift cards at the Holidays. When absorbed into a larger corporation, they had to change the gift to something up to $25, and that gift card became a box of chocolate. Not a welcomed change. 🙂 ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [December 5, 2018, 1:27am UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/25 "2018-12-05T01:27:53Z")
> [@mixdenny](#): > > This reminds me of the way some game shows used to be, Wheel of Fortune I think was a one example. Contestants would earn show “dollars” good for selecting items from various rooms if they won. I wonder how happy many of the winners were at the end of the year when they realized room the room full of bathroom products like towels and soaps “worth” $1000 was going to cost them like $300 in additional taxes. If they had simply been given the money they would never have spent it on such junk. > > Dennis My Jeopardy prize was a week in a resort including a budget for airfare and rental car. Since the resort was 60 miles from my house, and 40 miles from the nearest airport, flying there would have been a bit tricky. So, I didn’t spend the travel money, but I still got taxed on it. ---
**Author:** ![nightshadea](https://avatars.discourse-cdn.com/v4/letter/n/7ba0ec/32.png) [@nightshadea](https://boards.straightdope.com/u/nightshadea)\ **Post date:** [December 5, 2018, 2:14am UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/26 "2018-12-05T02:14:45Z")
> [@mixdenny](#): > > This reminds me of the way some game shows used to be, Wheel of Fortune I think was a one example. Contestants would earn show “dollars” good for selecting items from various rooms if they won. I wonder how happy many of the winners were at the end of the year when they realized room the room full of bathroom products like towels and soaps “worth” $1000 was going to cost them like $300 in additional taxes. If they had simply been given the money they would never have spent it on such junk. > > Dennis those taxes are why a lot of game shows give cash its also why most game shows don’t film in CA anymore I met one of the old price is right girls at a car show and she said that 80 percent of the people who won anything on the show took t cash equilivent that they have to offer by ca law sort of like how you win the lottery and take the one time payout they have a version based on the value of your prizes and you get that in a check or cash ---
**Author:** ![lingyi](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@lingyi](https://boards.straightdope.com/u/lingyi)\ **Post date:** [December 5, 2018, 2:36am UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/27 "2018-12-05T02:36:48Z")
At one my jobs, we’d get $50 gift cards (I think Starbucks or Jamba Juice) at Christmas from our manager’s boss. We’d then see a $15 tax deduction on our next paystub. The thing is I don’t drink Starbucks or Jamba Juice and end up giving the card away. So I end up paying $15 for my gift! ---
**Author:** ![commasense](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/commasense/32/3017_2.png) [@commasense](https://boards.straightdope.com/u/commasense)\ **Post date:** [December 5, 2018, 11:20am UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/28 "2018-12-05T11:20:22Z")
> [@Voyager](#): > > My Jeopardy prize was a week in a resort including a budget for airfare and rental car. Since the resort was 60 miles from my house, and 40 miles from the nearest airport, flying there would have been a bit tricky. So, I didn’t spend the travel money, but I still got taxed on it. I had a similar problem with my Jeopardy! prize, but I asked the show to give me a letter saying that I didn’t use the full value of the airline ticket, and included that with my tax form, and wasn’t taxed on it. Sorry no one suggested that to you. ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [December 5, 2018, 2:00pm UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/29 "2018-12-05T14:00:30Z")
> [@UDS](#): > > But this gives rise to a question. If the gift card is going to be taxed on its nominal value, why give employees gift cards? They would be better off if you just gave them a bonus of the same value. It’s quite likely the company was able to buy the cards at a discount, so they gave away $50 gift cards that only cost them $40 each. Retailers are often willing to sell large lots of gift cards for below face value, knowing they’ll make it back in the value of unused cards (aka breakage) anyway. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [December 5, 2018, 5:11pm UTC](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504/30 "2018-12-05T17:11:31Z")
> [@commasense](#): > > I had a similar problem with my Jeopardy! prize, but I asked the show to give me a letter saying that I didn’t use the full value of the airline ticket, and included that with my tax form, and wasn’t taxed on it. Sorry no one suggested that to you. Taxes for $400 Alex “You submit it if you have a change to past years’ taxes” “What is Form [1040X](https://www.irs.gov/forms-pubs/about-form-1040x)?” [Previous page](https://boards.straightdope.com/t/do-gifts-from-work-get-taxed/825504.md?page=1)