In 2006 we gave our 3 children about $30,000 for health, business and lawyers fees. Can we deduct these costs

Answer 1

you left out whole bunch of other factors. in general, no. it depends on age, income and other factors.

Answer 2

No, those would not be deductible by you. The portion that your children spent on medical expenses could be deductible by them if they itemize.

If you gave EACH child $30,000, then you'd have to file a gift tax return. You would probably not have to pay a gift tax, though, unless you have given away huge sums in addition to this over the years. If the $$30K was split evenly between the three of them, then you don't have to file a gift tax form.

Answer 3

If your child is your dependent, you would be able to deduct any medical expenses paid for them on your Form 1040, Schedule A.

Otherwise you would not get any deduction.

If you and your husband gave more than $24,000 to one of your children, you would have to file gift tax returns (Form 709). You would each file your own gift tax return.

Answer 4

Don't take anyones word on it.
All you need to do is to phone the nearest IRS office and they will answer your question.
If it's a complicated question go to the office.
There is almost invariably an IRS office within an hours drive from practically everyplace in the USA.

Answer 5

No, those are not deductible by your nor are they considered income to the child(ren).

Furthermore, if either of you gave $12,000 or more to one of the children, you'll have to file a Gift Tax return, Form 709 http://www.irs.gov/pub/irs-pdf/f709.pdf and pay any Gift Tax due. Gift taxes are assessed upon the donor, not the recipient.

Answer 6

You might be able to deduct, if you have a business like an S corp and some of these expenses can be traced to you two like your attorneys and health insurance.