“I think altogether the value of everything would be less than $1,700. But anyway, does the $1,700 no-W2 limit apply only to wages, or also to non-cash items?”============>I guess it is just a gift, noncash gifts, for you so you, as a done, do not need to report it as your income; However, if the non-cash "gift" is really a reward for a job well done, or an incentive to do a good job in the future, then the gift becomes taxable.ALSO as the FMV of the stuff is less than $13K for 2013, the donor doesn’t even need to file Form 709.However, cash gifts from employers are always considered taxable income. This includes "cash equivalents" -- items that can be used in place of cash such as gift certificates and gift cards. The reason for this is simple: to prevent both employers and employees from avoiding taxes by dressing up compensation as "gifts."
“ How should I report this stuff? And if he bought me meals while we were working, do I have to report that, also?”=========>No as said above; you neeed to report the compensation of $342.50, NOT a gift, on 1040 line 21 since it is NOT reported on W2, not your salary. |