How much money can be gifted per year by parents and is it taxed?

Answer 1

A person can give any number of gifts of less than $12,000 to any number of persons. No tax is payable on these gifts.

The person who receives a gift of any amount does not pay any federal gift tax. Only donor may have to pay the tax.

Some States do collect tax on gifts from the person who received the gift. So check at your state web site.

All gifts of more than annual exclusion amount ($12000 for 2007) must be reported by the donor. The receiver does not report the gift unless it is from the foreign sources. There is a lifetime exclusion of $1 million. A person making a gift in excess of $12K must include the gift in the lifetime exclusion and file Form 706 to document the gift.

If you are married, both you and your spouse can separately give up to $12,000 to the same person in 2007 without making a taxable gift.

So the parents can give $12,000 each (total $24,000) in 2007 to a child without any gift tax.

Answer 2

Each parent can give each child up to $12,000 per year without any reporting being required. If more than that is given, the giver has to file a gift tax return, and might or might not have to pay a gift tax on the gift.

The person receiving the gift doesn't pay tax on it, or report it, no matter what the amount is.

Answer 3

In addition to the above, a parent can pay a child's medical or tuition bills without tax impact, if the payment is paid directly to the provider.

Answer 4

under the U. S. Federal tax code, presents are in no way taxable to the recipient. The donor would desire to document a present day tax return if any they supply better than a undeniable volume to a minimum of one man or woman. the quantity was once $10,000. i think of it has develop, yet i've got no longer examine for some years. State tax regulations would variety. What state are you in?