Does parents help with my income get reported on taxes?

Question

Here is the situation. For all of 2006, my parents provided me a monthly income to help out with paying bills and such. Do I need to report this on my taxes, and if I do, what form is involved with recording of such info?

Answer 1

No - but there are questions.
Do your parents take a deduction for the money anywhere?

Could you be your parents dependent. see the 3 Tests page 28

Is your filing status married filing jointly.

See the 5 Tests To Be a Qualifying Child

Even so - money your parents provide you is not income.

Unless they take payments made to you as a business tax deduction or you are an employee of the business. Then it's a completely different animal so it's best to discuss it with parents.

See Publication 17 Your Federal Income Tax for Individuals
page 27 and 28 among others.

See Table 3-1 Overview of the Rules for Claiming an Exemption for a Dependent

Are you a full time student under the age of 24 at the end of the year and therefore your parents dependent?

Are you your parents dependent under the age of 19?

Are you an employee of your parents business?

You must not have provided more than half of your own support for the year.

Suggest you make a thorough study of Publication 17

Answer 2

Gifts are not taxable to the recipient. You have nothing to report. This assumes that you're not actually employed in a family business. If you're performing some service in exchange for the money, you're an employee and must report the income.

Answer 3

Each parent may give each of their children up to $12,000 per year with no tax consequences for either side. Unless they gave you more than $24,000, you do not need to report anything.

Answer 4

unless your parents gave you more then 12 grand, don't worry about it. if its more, there is a a gift tax form your parents need to fill out and send to the IRS. you don't do anything

Answer 5

Are they claiming you as a dependent? If not, why say a thing?