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Thread: A Tax Question about "Gifts"

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    Banned Katrine's Avatar
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    Default A Tax Question about "Gifts"

    Although I have already consulted with my accountant about this one, I would like a second opinion:

    Let's say I received a $12,000 gift last year in$1,000 a month increments last year. This income was earned by someone else and reported as earned taxable income on their returns. Let's say the gift was from my parents, and I am no longer claimed as a dependant on their taxes.

    I havn't done my return yet this year, and I will report this income, but is it taxable? A person can receive up to $15K a year as a gift is what I've heard, or is that the amount someone can gift?

    Advice?

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    Veteran Member NVJosh's Avatar
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    Default Re:A Tax Question about "Gifts"

    Actually, you can receive up to $11,000 per year as a gift. However, if your parents gave you the money, they can each give you $11,000, for a total of $22,000.

    You don't need to report the income anywhere on your 1040. Its a gift, not income.

    Even if you got $12,000 from one person, if it was a gift, its not taxable to you. The person who gave you the gift would have the responsibility to file a gift tax return and report the $12,000 gift, which would use up $1,000 of his or her lifetime gift/estate exclusion.

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    God/dess montythegeek's Avatar
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    Default Re:A Tax Question about "Gifts"

    LOL I need to read all threads before I post. I just posted the same thing in Pamela's question.

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