Husband and wife receive $10,000 gift each. We file married, do we have to pay gift tax as if it's $20,000?

Question

If my wife and I each receive a gift of $10,000 in our own names, but we file married tax return, do we have to claim those gifts? They are pure gifts to each of us separately, and not earned income.

I know that an individual can receive up to 12,000 without filing, but how does that apply when we each receive 10,000 and we're married? Does the law see that as a $20,000 gift to "one person" or are they still qualified as individual gifts, regardless of a married filing status?

Answer 1

individual gifts, marital status doesn't matter. And anyways, it's the giver who would have to file a gift tax return if they gave a gift over $12,000, not the receiver.

Answer 2

Person you receives a gift does not pay any tax; nor any filing is required.
Person who makes the gift must file Gift tax return if gift to any individual exceeds $12,000. A person can make any number of gifts up to $12,000 to different persons.

For more details read IRS publication 950 at www.irs.gov. It has only 8 pages.

Answer 3

First, there is a legal concept called gift splitting whereby you and your wife may split a gift of $22,000. The annual minimum for gift tax purposes is $11,000 in 2006 so by splitting a $22,000 gift there would be no taxable gift (assuming all parties are US citizens). For gifts above that, you have to file a gift tax return, Form 709, but no tax is due until you have made cumulative taxable gift over your lifetime in excess of $1 million. And yes, the gift tax is an excise tax on transfers and must be paid by the giver.

Answer 4

The receipient does not report or pay tax on a gift. If there is any gift tax due, it's paid by the donor. Unless one person gives ove $12,000 in a calendar year to one other person, there is no reporting requirement - someone can give gifts of $12K each to as many people as they want to without reporting them.

Gifts to two people who are married to each other are looked at as two separate gifts.

Answer 5

You don't have to pay gift tax. You each received $10,000. It doesn't matter that you're married.

Answer 6

The law sees it as seperate gifts. Even if they did not, you are not the one responsible for gift tax, the giver is responsible for the tax.

Answer 7

you need a tax attorney cause we cannot correctly answer this question . good luck .

Answer 8

I think you do, but not an expert.