Sitting down to a Thanksgiving meal with loved ones can be priceless. And, while the meal itself isn’t exactly priceless, it can come tax-free. Here are four Turkey Day tax facts you may not be aware of:
If your friends or family in Canada are celebrating, you can bring one turkey (fresh, frozen, or chilled) weighing up to 20 kilograms into the country duty-free. But bring in a turkey that weighs more and you’ll have to pay a duty on it.
According to the IRS, an employer is allowed to give employees a holiday turkey without any taxable issues to the employee. However, if the employer gives the employee a gift certificate to purchase the turkey that could instead be used for general merchandise, the amount of the gift certificate would be treated as taxable income to the employee.
According to New York State tax law, glazed or sugar-coated fruits are taxed as candy, which is not exempt from sales tax like some other foods. However, the holiday favorite Craisins, are not considered candy.
Stop by your local supermarket for your traditional Thanksgiving dinner fixings such as turkey, potatoes, cranberries and pumpkin pie and you won’t pay sales tax on those food items in most states.
So, while you’re at the store doing your Thanksgiving shopping, consider these tax tips to get the biggest bang for your buck during the holidays!