My dependent adult child gets money from me every month t buy things she needs(like toothpaste,etc.,). She does chores around the house, but she would get this money whether she did the chores or not. Is this money taxable? Also she hasn't filed taxes for several years because she doesn't work and all she gets is a minimum amout of interest from a savings account and a cd? Should she file six years back even though she doesn't owe anything and is there any way to forego the late filing fees(she doesn't have much money)?
2007-03-30 08:10:21 · 3 answers · asked by Bea Bonnie 1 in Business & Finance ➔ Taxes ➔ United States
Gifts are not taxable to the recipient.
As far as whether or not she needs to file, it's based upon her income and filing status. For 2006, she would have had to have had more than $5,150 in wages, or $400 in self employment income, or $850 in unearned income such as dividends and interest before she would need to file a return.
Lower limits apply for earlier years; check on the IRS website for the specific details.
From what you've described she probably has not tax liability or need to file. However if there is any tax due for prior years the IRS will assess penalties and interest for late filing and late payment unless she can show a compelling reason for not having those assessed.
2007-03-30 08:58:04 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The money would be a gift and not taxable income.
This year she does not have to file taxes if her total income is under $5,150. and her unearned (interest, etc.) is under $850.
2007-03-30 15:26:42 · answer #2 · answered by Gary S 2 · 1⤊ 0⤋
No
If you say so
No
2007-03-30 15:14:29 · answer #3 · answered by Jo Blo 6 · 1⤊ 1⤋