Award Payments and Taxes
Many people have wondered whether or not award payments are taxable. The short answer is: yes. Though there are a few exclusions, most award payments are seen as supplemental wages by the IRS and are open for taxation. If an award is made as an exclusion to their policy, the IRS will check to confirm that the award is truly one of the exclusions. If the company tries to disguise a regular award as an exclusion, the IRS will tax the compensation regardless of exclusion status.
Provided by: Mometrix Test Preparation
Last updated: 12/15/2017
Find us on Twitter: Follow @Mometrix