What amount can you receive as a gift, without having to claim as taxes?

Question

Someone gave me a gift of money. What amount can you tell me that I can receive without having to pay taxes on it.

Answer 1

There is no Federal tax on gifts or inheritance for the person who receives the gift or inheritance. Some states do have such a tax. The giver must report the gift if it exceeds $12,000 ($24,000 if they are married and file a joint return. It will not have an effect on the givers tax until they die. In that case it would effect their estate tax if they have an estate in excess of $2 million (if they die in 2006, that number changes frequently).

Answer 2

The receiver of a gift does not have to pay taxes on the amount received. The giver could have given $11,000 per person in 2005 and $12,000 per person in 2006 to any number of people without having to pay any gift tax. If any tax is owed, it is the giver who will owe it. Married couples filing jointly can both gift amounts, effectively doubling the amount they can give to one person without having any tax. There are some exclusions which can allow the giver to give more without being taxed, but you may have to file a gift tax return. Exclusions include for education or the unified credit (see your tax advisor).

Answer 3

Gift Taxes are not paid by the Receiver. They are paid by the Giver. If someone gives over $12k to any one person in one year, a gift tax return should be filed but, even then, gift taxes may not be owed.

Answer 4

The tax burden is on the person making the gift, not you. Currently the donor can exclude paying gift taxes on $12,000 (per donee). Ex: Your mom and dad can each gift you $12,000 and nobody will get taxed on the $24,000. The limit will change in 2007.

Answer 5

I believe it's $12,000. You won't pay tax on that amount but the person giving it to you will have to pay a gift tax - that is how it is SUPPOSED to work. Good Luck!

Answer 6

Up to $500.00 and you don't have to claim it