Hybrid Car incentives and bonuses - have you properly reported them?
The IRS made a very important announcement yesterday. I felt it was particularly important to bring it to your attention because of the series I’ve been running on employers offering benefits for employees who purchase hybrid cars.
Some confusion arose as to the taxable status of that bonus.
To summarise the current position:
1. Cash incentives of this nature are taxable
2. Your employer should include this amount on your year end Form W-2 earning statement
3. These bonuses are subject to income tax witholding
If you are in the position of having received one of these bonuses and feel that your tax obligations have not been met I would urge you to contact your employer or a relevant legal/financial professional as soon as possible.
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