If you are married and have been filing as independent for a few years, how do you record a gift of money from parents that paid off outstanding education loans? Are there taxes that need to be paid?
2007-04-02 05:10:48 · 2 answers · asked by Raylan 2 in Business & Finance ➔ Taxes ➔ United States
There is no such filing status as "independent." Since you are married, your filing status is either Married Filing Jointly or Married Filing Separately.
If your parents simply gifted you money to pay off your loans, with that is not taxable income to you and you owe no tax on the monies. Depending upon the amounts and timing of the gifts, your parents MAY have a taxable event for Gift Tax purposes.
2007-04-02 05:16:46 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 1⤋
You don't owe taxes, or have to report, gifts to you. Each of your parents can give you $12,000 per year without having to report it. If they give you more than that in a year, they'd have to file a gift tax report, and possibly pay a gift tax but probably wouldn't.
2007-04-02 11:10:29 · answer #2 · answered by Judy 7 · 0⤊ 0⤋