Question

Which of the following situations will result in an award being excluded from gross income? (Check all that apply.)

a. When the award is a noncash item valued at less than $400, and given for either safety or years of service by an employee
b. When the award is given for scientific, literary, or charitable achievement and meets certain other requirements

Answer 1

An award can be excluded from gross income if it is a noncash item valued at less than $400 and given for safety or years of service, or if it is given for scientific, literary, or charitable achievement and meets certain requirements.

Step-by-step explanation:

The situations that will result in an award being excluded from gross income are:

1. When the award is a noncash item valued at less than $400, and given for either safety or years of service by an employee.
2. When the award is given for scientific, literary, or charitable achievement and meets certain other requirements.