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The $ 10,000 is listed as employer grant on the HUD-1. I also received other first time home buyer grants from the state (of New York) and county, but those are tax-free. Just wondering about the $ 10,000 from my employer, there’s no repayment and the only terms were the employee (I) had to have worked full time with the company for over three years.
The $ 10,000 was not included as part of my salary.

I have no documentation of receiving it except for a photocopy of the check and the “employer grant” entry on my HUD-1.
Thank you to everyone who has replied already! Very much appreciated!

I’ve asked my employer and they said that it is a gift, no strings attached. How would I tell the IRS that though?

4 Thoughts on I received a grant of $10,000 from my employer towards a first home purchase. Do I pay taxes on that?
  1. Reply
    Age of Reason
    October 23, 2011 at 11:41 pm

    yes it is taxable.

  2. Reply
    Bostonian In MO
    October 23, 2011 at 11:56 pm

    That’s taxable income and should have been included in boxes 1, 3, and 5 of your W-2.

  3. Reply
    October 24, 2011 at 12:20 am

    There’s nothing extra you need to do. It should already be included in the income on your W-2.

    It will be taxed the same way as your regular income from work.

  4. Reply
    Lori W
    October 24, 2011 at 1:02 am

    Basically any income received is taxable. If the grant is included on your W-2 then you pay taxes on it. If not, it may fall under a gift which are exempt from taxes up to $ 10,000. Check your W-2 and if it is not included, verify that the grant falls under a “gift”.

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