Cash Awards

DEFINITION of 'Cash Awards'

An award given to an employee or contestant in the form of cash. Cash awards can either be the only award option or taken in lieu of a tangible item.

BREAKING DOWN 'Cash Awards'

Regardless of whether they are given to an employee as a reward for merit or to the winner of a contest, cash awards are always fully taxable as income.

Richard Hatch, the first winner of the game show Survivor, found this out the hard way, when he didn't claim his million dollar winnings on his tax return.

RELATED TERMS
  1. Award Letter

    Documentation sent from a college or university to the student ...
  2. Nobel Memorial Prize In Economic ...

    A prestigious award acknowledging outstanding contributions to ...
  3. Performance Bonus

    A form of additional compensation paid to an employee or department ...
  4. Collateral Source Rule

    A common law rule of evidence pertaining to punitive or other ...
  5. John Bates Clark Medal

    An award issued to an American economist under the age of 40 ...
  6. Treble Damages

    A law that permits a court to triple the amount of damages awarded ...
Related Articles
  1. Investing

    Netflix's 8 Golden Globe Nominations--TV's Not Just Disrupted; It's Dead

    Netflix got more Golden Globe noms than HBO. Is streaming officially the death-knell of traditional TV?
  2. Stock Analysis

    Pentagon Awards $1.4 Billion in New Contracts (BA, GE)

    The Pentagon opened up the work week Monday with 14 new defense contract awards, worth $1.41 billion in total. However, not all of these contracts went to what we ordinarily consider "defense ...
  3. Taxes

    Taxable Rewards To Be Aware Of

    Find which benefits from reward programs count as income in the eyes of the IRS.
  4. Options & Futures

    Should Employees Be Compensated With Stock Options?

    Learn the good, the bad and the ugly sides of this type of payout.
  5. Stock Analysis

    Guess Who Won a $900 Million Defense Contract? (BAH, RTN)

    The Pentagon awarded $1.24 billion in new defense contracts Tuesday, but just one deal took the cake at $900 million. The big award was actually a multi-party contract, with three winners who ...
  6. Economics

    Understanding Cash and Cash Equivalents

    Cash and cash equivalents are items that are either physical currency or liquid investments that can be immediately converted into cash.
  7. Stock Analysis

    Pentagon Lays Out Cash for SatCom Sets (BAESY, COL)

    Late last week, satellite communications company ViaSat (NASDAQ: VSAT) won a major Pentagon contract worth $514.3 million. The company will produce and then maintain Multifunctional Information ...
  8. Stock Analysis

    SAIC Lands $315 Million U.S. Defense Contract

    One single company took home more than 40% of the nearly $750 million in contract awards that the Pentagon announced earlier this week: SAIC (NYSE: SAIC). In a big $315 million contract win ...
  9. Investing Basics

    Introduction To Phantom Stock And SARs

    Phantom stock and stock appreciation rights reward employees with compensation tied to stock performance.
  10. Options & Futures

    The "True" Cost Of Stock Options

    Perhaps the real cost of employee stock options is already accounted for in the expense of buyback programs.
RELATED FAQS
  1. How can I request a Social Security disability award letter?

    Learn about award letters and how to apply for Social Security disability benefits. Gain insight as to why disability applications ... Read Answer >>
  2. What are the most common sources of funds given in a financial aid award letter?

    Read this article to learn about the four most common sources of funding given in a financial aid award letter sent to a ... Read Answer >>
  3. Are credit card rewards taxable?

    Learn why some credit card rewards are taxable and some are not. Understand the important distinction the IRS makes between ... Read Answer >>
  4. How do I determine cash flow investing activities for a publicly traded company?

    Learn how cash flows from investing activities are calculated, which sources and uses of cash are included in this section, ... Read Answer >>
  5. I've noticed executives buy a lot of stock below market value, and then they sell ...

    On October 30, 2006, a Google executive officer purchased 2,541 shares of Google at $9 per share and sold these same shares ... Read Answer >>
  6. How can you use a cash flow statement to make a budget?

    Understand how a cash flow statement can be used to create a company budget. Learn the difference between a cash budget and ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center