My son is over 21 and has no independant income of his own. If I transfer money from my savings account to his, is this considered income for him and must he file a tax return for the IRS?
2007-02-19 01:43:19 · 5 answers · asked by pearl deli 1 in Business & Finance ➔ Taxes ➔ United States
No, this is not income to your son.
If the amount was over $12,000, you would file a gift tax return (Form 709). You (the donor) need to file the gift tax return, not your son. You are entitled to give $12,000 per individual without having to file a gift tax return. You are allowed to gift $1,000,000 over your lifetime without paying tax on this amount (lifetime gift tax credit), however you still need to file a gift tax return for recordkeeping purposes.
Here is form 709 and instructions:
http://www.irs.gov/pub/irs-pdf/f709.pdf
http://www.irs.gov/instructions/i709/index.html
2007-02-19 18:58:10 · answer #1 · answered by tma 6 · 0⤊ 0⤋
He does not pay any tax on the gift. You might have to pay Gift Tax on it if it's more than the current annual exclusion amount of $12,000.
Gift Taxes are always paid by the giver, never the recipient. If Gift Tax is due, YOU must file the return and pay the tax.
2007-02-19 04:07:27 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 1⤋
No, it is not income to your son and this money does not figure into his tax return.
If the amount is over $12,000 for 2006, you may need to fill out a Gift Tax Return for yourself, but no tax will be owed.
2007-02-19 01:49:12 · answer #3 · answered by ninasgramma 7 · 3⤊ 1⤋
definite, in the journey that your earnings is above the edge distinctive via the IRS, you are able to record a tax return. Your tax return does not incriminate you for different crimes and does not violate the 5th modification. If somebody is telling you the rest, they are full of it. in case you do not record a tax return there could nicely be severe outcomes consisting of heavy fines and penitentiary time. i won't be in a position to emphasize this adequate. record your tax returns and overlook approximately people who say in any different case. BTW, the reality which you observed a action picture that suggested the earnings tax replaced into unlawful isn't admissible in info at your criminal trial.
2016-12-17 13:39:12 · answer #4 · answered by holness 4 · 0⤊ 0⤋
In 2006, the amount of money of gift that you could give without it being taxable was $12.000. I am not sure if that amount has changed for 2007
2007-02-19 02:01:45 · answer #5 · answered by tax girl 1 · 0⤊ 0⤋