Are CME Gift Cards Taxable Income?

CMEList February 26, 2019

With the tax season deadline quickly approaching, many physicians may find themselves scrambling on what to do with the free gift card they received from a CME with gift card offer. If this was your first time purchasing a CME gift card activity, you might be wondering whether or not you have to claim the free gift card on your taxes.

Are CME gift cards taxable income?

Yes, the free gift card you receive from a CME with gift card offer is considered taxable income. This means that you are required to claim the exact value of the gift card and pay the appropriate amount of taxes.

The gift card you receive is subject to being reported on the following items:

  • Federal Income Tax
  • Social Security Tax
  • Medicare Tax
  • State Income Tax

The gift card, however, does not have to be reported on FICA taxes.

Are there tax exceptions to certain CME gift cards?

No, all gift cards you receive from a CME gift card offer must be reported as taxable income.

Often times, when people receive a noncash benefit that is worth less than $100 it is considered as a “De minimis” fringe benefit. These fringe benefits do not have to be reported as part of the income because it is so small it makes accounting for it impractical or unreasonable. You may be thinking if you received a gift card less than $100 with your CME activity, you do not have to report it. Gift cards of all values, however, are not considered “De minimis” fringe benefits because the value is clear and easy to account for. Essentially, all gift cards are cash equivalents and must be reported as part of your income on your taxes.

How to get a free gift card with your CME allowance?

If you have not purchased your gift card offer yet and are just planning ahead for when you do and have to file your taxes, there are many top options to choose from. Two of the top gift card offers you can purchase with your CME allowance are:

Both these offers are convenient, will help you meet your CME and/or MOC requirements, and come with at least a $1,000 complimentary gift card with purchase.

Check out more information on these top 2 CME top gift card offers.