@EJNich1 wrote:
Ok, even though the owner paid all the tax on it already? It was gross $38K, they paid taxes on it to get it to the net $25K that I received. I still have to consider it taxable income after all that?
Probably. Did you read the article and case at the link above? Almost the same fact pattern.
Also, everyone who gives a gift to another individual has already paid taxes on the amount given (i.e., there is really no such thing as a "pre-tax gift") and, importantly, this gift is being given by a former employer to former employees so a business relationship had already been established.
