Chapter 4: Gross Income from Personal and Investment Activities

01.Core Concepts

General Rule: Included in Income • If paid directly to charity at request of recipient, excluded from gross income if: • The prize was given primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement. • The recipient must not apply for the award. • The recipient must not be required to render substantial future services. • Employee achievement awards are excluded if: • Award is not in excess of $400. • Total awards to employee cannot exceed $1,600. • Awards must be in the form of tangible personal property.