7 Random Things You Will Get Taxed For

gift
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7. Gifts from Your Employer

You don’t usually need to pay taxes on gifts you receive, even if they are worth a lot of money. However, if your employer gives you a lovely—and expensive—gift as a reward for a job well done (or to convince you to say “no” to a job offer from a competitor), chances are you’ll have to pay taxes on the value of your newly received possession.

A half-century ago, the Supreme Court decided that the rule doesn’t apply to gifts made out of “disinterested and detached generosity.” Also, according to the court, gifts that reward an employee for their services can be excluded from their income. Gifts that help promote the company also don’t meet the standard.

You may also want to read These 6 Things Will Cut Down Your Social Security Payments.

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