My mother in law moved in with us 2 years ago and has been giving us $200 a month to help with food and bills. Do I have to claim this as income?
2007-01-03 12:00:20 · 8 answers · asked by lbrooks1110 2 in Business & Finance ➔ Taxes ➔ United States
No, that's a contribution she's making toward household expenses, and isn't taxable.
2007-01-03 13:19:03 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
More importantly, the question is how the IRS would ever find out that you were receiving these payments anyways.
Basically, you have to do what you believe to be correct. Believe that its not income and if world turns on its head and the IRS becomes omnipotent and still decides to go after $2400 of income, you'll just have to pay the taxes then because of your good faith belief it wasnt income. (no penalties, no jail time.)
2007-01-03 12:41:42 · answer #2 · answered by Jonny Chicago 2 · 0⤊ 0⤋
Talk to a tax professional, but it seems it might work better for you if you called it a gift rather than income. If it can be called a loan, that changes things yet again. Gift tax is a different rate from income tax. Then again, some states (mostly in the NE) ruin that by taxing the H out of gifts.
2007-01-03 12:11:11 · answer #3 · answered by Anonymous · 0⤊ 1⤋
You don't, it is not income. At worst, it would be a gift to you. In that case, it is far below the amount that triggers a gift tax return. More likely, it qualifies as her share of household expenses.
2007-01-03 12:12:26 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
i heard you only have to claim what is 'earned income' more than $3500. for the year
2007-01-03 12:14:37 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No. Your mother-in-law can "gift" up to $12,000 per year to each of you with no one having to claim it.
2007-01-03 12:08:35 · answer #6 · answered by Bill P 5 · 0⤊ 1⤋
No, it's not considered income.
2007-01-03 12:09:06 · answer #7 · answered by Anonymous · 1⤊ 0⤋
no
2007-01-03 12:08:06 · answer #8 · answered by alleykhad607 5 · 1⤊ 0⤋