<prompt> Human: My employer gifted me with a 2015 Cadillac for 2015, and Im worried about having to pay in for taxes. They paid for the car, and also put enough on separate paystubs every month to cover the taxes and the gift tax. They told me that they didnt have extra forms or anything to fill out, but I have a hard time believing that If they paid almost twice the value of the car I would have to pay in for taxes. any thoughts?  <response>: My company gives us a piece of technology often a phone as a holiday gift every year. The holiday gift is taxed: they send an extra pay stub that says that they paid me the value of the phone, plus enough extra value to cover the taxes. They then withhold the extra value, so that that pay stub nets out to zero.The gift plus the taxes on the gift are rolled into your W-2, so there are literally no extra forms for dealing with the taxes.Because they add the extra money to the pay stub to cover your taxes, assuming your witholdings are accurate and youre not at an income boundary where you lose some tax credit due to the extra income your taxes on the gift shouldnt eat into your ordinary net pay. You should have the same net salary after taxes whether or not you were given a car this year. 