my mom inherited 10,000 is afraid that will screw up her taxes at the end of the year, should she give it to me as a gift to help or will that put me in a new tax bracket and not able to get earned income credit.
2007-09-27 05:28:25 · 8 answers · asked by Melissa Z 1 in Business & Finance ➔ Taxes ➔ United States
It has no affect. Any tax was paid by the estate of the decedent and TX has no inheritance tax.
Since it is not income it has no affect on the EIC either if she's eligible for it.
It's "free" money. Tell her to enjoy!
Ignore the first response. The poster has a very well chosen name. ;)
2007-09-27 05:33:19 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
1) Chances are it is not taxable. It depends on where the money came from. It this case, there would be no effect on the tax return.
2) If it came from a 401k or IRA, then it is taxable to her. Giving it away would do any good. She would still have to report it even if she gave it away.
Why would she care about $3k-$4k in EIC if she just got $10k? Last time I looked, $10,000 was more than $4000. Complaining that receiving $10k would reduce her EIC is like turning down the lottery winnings because you didn't want to pay the taxes.
2007-09-27 05:38:13 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
Lottery winnings are taxable! When the Play-4 Lottery sent you form W2-G they also sent notification to the IRS that you received this income. Therefore the IRS will be expecting you to include this on your income tax return as taxable income. This is one area where many people get into trouble with the IRS by not including their winnings as income. The IRS eventually catches it and sends the taxpayer a bill (IRS Notice CP2000) for the difference along with penalties and interest. Just be sure to report it!
2016-04-06 03:50:29 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The inheritance she received won't be reported on her income tax return, and she won't owe tax on it.
If she gave it to you, it would have no effect on her tax. If she gave you a$10,000 gift just out of money she already had, that wouldn't affect your taxes or hers either - the giver doesn't get to deduct gifts they give.
2007-09-27 05:57:15 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Inherited money is tax free. No TAXES!
2007-09-27 06:02:32 · answer #5 · answered by extra_37 4 · 1⤊ 0⤋
listen to Boston as usual the answer is right on. the other two should get out of the tax section when answering questions as they haven't the slightest clue.
2007-09-27 05:39:10 · answer #6 · answered by Anonymous · 2⤊ 0⤋
actually you are allowed a 1 time gift from you spouse so if shes married she needs to give it to her husband.... its tax free.. as far as giving it to you...not sure
2007-09-27 05:32:30 · answer #7 · answered by Anonymous · 0⤊ 3⤋
all depends other income and deductions she has and how she reports it.Talk to an accountant.
2007-09-27 05:34:31 · answer #8 · answered by hillman 3 · 0⤊ 3⤋