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Avoiding taxes on employee bonuses


chrispy

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Absolutely counts as income

 

Non-Cash Bonuses

If the bonus is not cash, but a trip or goods, you have to report the fair market value. The employer should report this on the W-2. It will be included in that box with wages and other compensation and not reported separately. If the bonus is in the form of a stock option, for instance, the employer should show the fair market value of the stock at the time of the bonus.

 

 

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