FlCpa
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Your parents could give you $100,000 and YOU would not have to report it. If your parents gift you more than the annual exclusion ($12,000 per person in 2006) they will need to complete a gift tax return (form 709) and possibly pay taxes (There are additional exclusions that are too detailed to get into here). However, they could technically EACH give you $12,000 from their own funds and no gift tax return would be necessary. And if they are paying money directly to an educational institution for tuition OR paying money directly to medical care providers for healthcare they can pay an unlimited amount.
This is actually a very good tax planning tool because your parents can move money tax free out of their estate that could end up being taxed later (depending on what Congress decides about the estate tax).
So if your parents are gifting you $10,000 a year just enjoy (or better yet save/invest) and don't forget to say "THANK YOU!!" |
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STEVEN F
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Under the US Federal tax code, gifts are never taxable to the recipient. The donor must file a gift tax return if any they give more than a certain amount to one individual. The amount used to be $10,000. I think it has increase, but I haven't check for a few years. State tax laws may vary. What state are you in? |
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rsbdkaise
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No, each parent or anybody else could give you that much and owe zero tax. If you could find five people to each give you 10000.00 apiece, you would still owe zero tax. I think this year its up to 12000.00 apiece allowed.. |
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Joe the Expert
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No, you do NOT need to report it.
In Tax Year 2006
You can give a $12,000 gift to anybody you want.
You and your spouse can give a $24,000 joint gift to anybody you want.
For parents or grandparents looking to reduce the size of your estate..:
You have a married child - You both can give $24,000 to that married child and both give $24,000 to the spouse of that married child. That's $48,000 per year to that family unit. Be generous now! |
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crazylandp
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gifts are not taxable to the reciever. if the gift is worth more than 11k, then the giver might have to pay taxes on it. |
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Judy1
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No, it would not be reported on your taxes. And since it's under the limit for gift tax, your parents don't have to report it either. |
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LA_kinda_guy
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You do not need to report a cash gift of under $10,000 on your taxes. |
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Adios
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No, you do not need to report the gift as income. |
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squall_o_lionheart
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What the hell is wrong with you man!? why would you even think of reporting that! The goverment already taxes you enough ,you want to give them another reason to bend you over and screw you. Just keep it all. |
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ADF
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You should be able to receive that amount from each of your parents if I remember correctly. I believe the limit is $10k per person. |
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Thin Kaboudit
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Yes, you need to report it on your tax return. So do they. However, no tax should be due on this transfer under current law, as far as I am aware. |
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jennilaine777
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Yes report it where it says to. AND they don't tax you on it... I think... |
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