Are gift cards or free merchandise considered income?

[bmerritt15]

If I receive a free gift card or get free merchandise for submitting my ideas or for reviewing products, does the value of those need to be reported as income?  Is so, is there some threshold below which it is not considered income? 

[Corrlich44]

Hi bmerritt15,

Great question and the answer is YES.

The IRS clearly considers the receipt of any form of income where a gift can be redeemed, are considered income and are taxable income.

"Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable."

https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits