When it comes to employee achievement awards in the form of gift cards and cash, you’ve been right all along: These awards count as income and are taxable.

 

So say the Tax Cuts and Jobs Act, which finally puts this rule in writing to settle the issue.

 

Guidelines for awards

 

Per the IRS, an employee achievement award of tangible personal property given for length of service, safety or as part of a meaningful presentation isn’t taxable. This includes items such as watches, pens and plaques.

 

The new tax reform law includes a specific provision saying that cash, gift cards and cash equivalents aren’t tangible personal property.

 

Other items that count as taxable income when used as employee achievement awards include:

 

Gift coupons and gift certificates

 

Vacations, meals and lodging

 

Tickets to sporting events or theater productions

 

Stock and bonds, and

 

Other securities.

 

More info: bit.ly/taxbill549