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Taxing Cash and Non-Cash Equivalents

Certain non-cash awards or prizes may be taxable and/or reportable as income to the recipient depending on the circumstances.

Whether an award or prize is taxable depends on the purpose of the award or prize, its frequency and its fair market value.

Gift Cards or Cash Equivalents

Cash and cash equivalent awards are taxable to the recepient.  If the award is employment related, it is subject to FICA and reportable on W-2 at the end of the tax year.  For more information on gifts and awards, see G-41 Employee Non-Cash Awards and Other Gifts.