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.

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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 >>
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    Learn how cash flows from investing activities are calculated, which sources and uses of cash are included in this section, ... Read Answer >>
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