And does the same rule apply to both dependents and independents.
2007-03-13 13:56:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Money received from your parents, or from anyone else, as a gift doesn't have to be reported on your tax return, and isn't taxable to you. This is whether you are a dependent or not. It's not considered income, not earned, not unearned.
If one person gives a gift over $12,000 in a year to another person, the giver must file a gift return and might be liable for a gift tax on it, but probably would not be.
2007-03-13 14:10:06 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
No, money received from your parents is not unearned income. Unearned income is interest, dividends, capital gains, etc. You do not report money received as a gift on your tax return. Its not taxable income.
2007-03-13 14:01:50 · answer #2 · answered by tma 6 · 0⤊ 0⤋
No.
Monies received from your parents are either called support or "gifts".
Support from your parents is not includible in income. Gifts, if in excess of
$ 11,000 per year might be subject to tax; however, its the payer that pays the tax, not the recipient.
2007-03-14 05:59:23 · answer #3 · answered by bold4bs 4 · 0⤊ 0⤋
No, money received from your parents would be treated as a gift. It is not taxable to you. There is no tax status called "independent."
2007-03-14 03:00:56 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋