wife wins lottery, $200,000, gifts $100,000 to husband. What does she pay taxes on, what husband pay tax on?

Answer 1

The wife pays tax on the $200,000, listing it as "other income". The husband doesn't pay taxes on any of it. If they file a joint return of course, then the winnings are listed there. They would probably save tax money overall by filing joint.

Gifts between spouses are not reported for gift tax purposes.

Answer 2

The $200,000 is taxable income to the wife. Giving part of it to her spouse is not a taxable event.

If they file separate returns, the wife's return will show the full $200,000 as income. The husband's return will show none of the lottery winnings as income.

Depending on other income, the tax on $200,000 could go as high as 35%, or $70,000.