Figuring Tax on Year-End Bonuses, Gifts, and Perks at the Office

With just a few weeks to go in the year, ‘tis the season for bonuses, holiday gifts, and other perks at the office. It can be challenging to navigate the niceties, but figuring out the tax consequences shouldn’t dash your holiday spirits. Here’s what you need to know.

Bonuses

Many companies pay out bonuses at year-end. If you receive a bonus from your employer, no matter how it’s paid out—cash, check, or crypto—you must report it as income in the year it’s received unless an exception applies.

You may be tempted to tuck it in your desk drawer until the ...