NOOOOOO! in The Chat Board Posted May 31, 2015 Interesting. I always thought anything above the limit was taxable as income for the donee. Clearly no one is giving me any wads of cash. What about situations like giveaways where the recipient has to pay taxes on the item and can't pay? I'm thinking of Oprah's car episode. Off to google... And yet again, I thank the universe for Federal Income Tax not being on the Bar Exam! Prizes and awards are not considered gifts for tax purposes. They are income.