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. Accounting Hall Of Fame

    A prominent award in the field of accounting. The Accounting ...
  2. Bursary Award

    A type of financial award provided to certain students to assist ...
  3. Award Letter

    Documentation sent from a college or university to the student ...
  4. Profits Interest

    A monetary right awarded to the general partner, investment manager ...
  5. Attorney's Fee Awards

    The order of payment of the attorney fees from one party to another ...
  6. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
Related Articles
  1. Personal Finance

    The Oscars and Golden Globes: Worth Their Weight In Gold!

    The Oscars and Golden Globes set off a wave of spending that creates new flows of funds in the economy and has major financial impact.
  2. Investing

    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.
  3. Markets

    The Pros and Cons of Executives' Pay Tied to Stock Performance

    Watch for situations where lavish executive compensation is either not justified by total shareholder return or rationalized by non-GAAP measures.
  4. Markets

    Cash: Can A Company Have Too Much?

    Cash is something companies love to have. But if they are not using it there could be problems.
  5. Investing

    Calculating Net Cash

    A company’s net cash is its total cash remaining after it subtracts all liabilities.
  6. Investing

    Jeff Bezos' Oscar Aspirations: Why?

    Amazon CEO Jeff Bezos says that he wants to win an Oscar one day. Should he instead focus on making a profit first?
  7. Investing

    Cash Flow Statement and Financial Health

    A cash flow statement records the amounts of cash and cash equivalents entering and leaving a company.
  8. Financial Advisor

    If You Win a Broker Arbitration, But Can't Collect

    Here's what to do next if your broker stiffs you when you win an arbitration.
  9. Investing

    Why Cash Management Is Key To Business Success

    Businesses need to generate a healthy cash flow to survive, but not hold too much so that inventory suffers or investment opportunities are missed.
  10. Personal Finance

    How The IRS Catches Tax Cheats & Liars

    When civil and criminal penalties don't deter people from skipping out on their taxes, the IRS has other tools it can use.
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. If I already hold a professional certification am I eligible for any exemptions from ...

    No. To obtain a CFA designation, you must complete all levels of the CFA program regardless of whether you hold a professional ... Read Answer >>
  4. 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 >>
  5. 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 >>
  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. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center