My situation is a little unique as my kids are also my employers, as well as my landlords. I moved here at the end of 2010. That Christmas, my son-in-law and daughter gave to my wife and I cell phones, because we had just recently moved here and had no phones. They wanted to be able to get hold of me should a work issue develop for which I was needed. At the same time, these mobiles have always been called a gift, even given to us from under the Christmas tree. They continue to pay for the plans to this day.
Although these have been called gifts, I just wanted to be sure they are not considered taxable income, since they are my employers. Any help?

if employee gifts are taxable, the answer will depend on the gifts given by the employers. Employee gifts are usually common in sales jobs because it serves as an incentive. This is an excellent way to keep employees motivated and to perform their duties properly. By simply identifying the gifts that are taxable, you can avoid tax issues. Giving gifts is a matter of personal choice. As long as the non-cash rewards don?t exceed $1,600 a year, it is non-taxable but the gifts should be given in recognition to accomplishments in safety, productivity, and service.

Thanks. I actually got through to the IRS yesterday and the representative with whom I spoke had a similar answer. My conscience is clear.