Gifts of tangible personal property (e.g., Cornell merchandise such as clothing, mugs, etc.) given as an award for length of service or a safety achievement is excluded from taxable income, limited to a cost of up to $400 received during the year.
Points given to employees through the Cornell Appreciation Portal (Awardco) are not considered taxable income to employees because they only confer the right to receive tangible personal property, and they are not redeemable or exchangeable for cash.
Report all gift cards or gift certificates, regardless of the dollar amount, to the University Tax Office on the Gift Card/Certificate Reporting Form for inclusion in IRS Form 1099 or 1042-S database for year-end tax reporting.
For U.S. citizens and U.S. resident aliens, no IRS Form 1099 is generated unless all payments received by U.S. citizens or U.S. resident aliens exceed the reporting threshold of $600 annually.
For foreign nationals/nonresident aliens, IRS Form 1042-S is generated for all payments received and reported. Because the IRS-required 30% tax was not withheld, the unit will be charged the 30% tax, based upon the amount of the gift card or gift certificate provided.
If you have questions about these rules, submit a service request.
The Gift Card/Certificate Reporting Form (PDF) must be completed when a faculty or staff member purchases a gift card or gift certificate over $75 for an any person or group (including current and former students, current and former or retiring employees), and preferably before the gift card/certificate is presented.