I give my parents ~$2500 a year out of my pocket (take home, after taxes) for whatever they need, is there anyway I can save from paying tax on this money come tax season?
2007-12-03 16:17:47 · 7 answers · asked by Sr. Joe 1 in Business & Finance ➔ Taxes ➔ United States
Yes, you can write it off because you gifted it to them
2007-12-03 16:20:05 · answer #1 · answered by Anonymous · 0⤊ 10⤋
No tax payable by the person receiving your gift or
estate. The person who receives your gift or your estate
will not have to pay any federal gift tax or estate tax
because of it. Also, that person will not have to pay
income tax on the value of the gift or inheritance received.
No income tax deduction. Making a gift or leaving
your estate to your heirs does not ordinarily affect your
federal income tax. You cannot deduct the value of gifts
you make (other than gifts that are deductible charitable
contributions).
2007-12-03 16:24:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, you cannot deduct gift money. In fact, if you exceed the annual allowable amount ($12,000 per person), you have to pay a gift tax.
2007-12-04 02:17:53 · answer #3 · answered by npk 7 · 0⤊ 0⤋
1. No it is not deductible.
2. If you give your parents enough money, then they can be your dependents under Qualifying Relative if:
I. The person's gross income for the year must be less than $3,400.
II. You must provide more than half of the person's total support for the year.
2007-12-03 18:01:26 · answer #4 · answered by MukatA 6 · 3⤊ 0⤋
Yes. Since you gave your parents $2,500 of your own money - that means you weren't earning any interest on that money in the bank. Therefore, you don't have to pay any taxes on the interest on the money because you never earned any interest. Unfortunately, that's the only benefit you'll get.
If your parents are really poor and living in poverty, you could ask them to get help from a 501(c)(3) chartiable organization & then you could donate money to the chartiable organization and write THAT off your taxes in the future.
2007-12-03 16:24:54 · answer #5 · answered by mukwonago53149 5 · 1⤊ 3⤋
No, you can't write it off as a gift. There are no tax deductions available for gifts to anyone.
2007-12-03 16:22:22 · answer #6 · answered by acermill 7 · 4⤊ 0⤋
No, it's a gift to them - you can't deduct it. And even the response above won't work - if you make a donation to a 501(c)3 charity that's specified to go to a particular person or family, it isn't deductible.
2007-12-03 16:25:38 · answer #7 · answered by Judy 7 · 5⤊ 1⤋