In February 2014, U.S. Deputy Marshal Raylan Givens used TurboTax software to complete his 2013 personal income tax return. When Raylan was nearly finished with his return, TurboTax presented Raylan with a promotional offer claiming to increase his federal income tax refund. Specifically, if Raylan elected to receive any portion of his federal income tax refund in the form of a gift card to Amazon.com, Intuit (the makers of TurboTax software) offered to match an additional 10% of the elected amount in Amazon.com gift certificates, free of charge. Raylan's total tax refund was $6,000, and he elected to apply $5,000 of his total refund to this offer. Raylan received an Amazon.com gift card from Intuit in March 2014 for $5,500 (i.e., $5,000 applied refund plus 10%). Raylan used the entire $5,500 gift card to purchase a new high-definition television and sound system so he could watch all of his favorite shows in style.

Based on the facts above, what amount of the $5,500 gift card, if any, does Raylan need to recognize as gross income for tax year 2014? Why? Assume Raylan is your client and prepare a brief research memo, complete with citations and analysis of primary authority, to support your conclusions. Remember that Raylan is not a professional tax preparer, so it is important that you explain your position in a clear and concise manner that is not overly technical (i.e., do not copy and paste excerpts from primary authorities and call it a day).