How much money can I receive as a gift without paying income tax?
Anandam asked:
I live in the US, California. My parents who live overseas want to give me some money as gift. Wondering how much I can receive without paying income tax. Also, when the money is transfered to my account do I need to fill out any form and submit to IRS?
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I live in the US, California. My parents who live overseas want to give me some money as gift. Wondering how much I can receive without paying income tax. Also, when the money is transfered to my account do I need to fill out any form and submit to IRS?
January 14th, 2009 at 3:12 am
$11,000 a year and it’s a gift, no form. Have them write on the check “gift”
January 16th, 2009 at 1:57 pm
If you gave any one person gifts in 2007 that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives the gift does not have to report the gift to the IRS or pay gift or income tax on its value.
For more information, get the IRS Publication 950, Introduction to Estate and Gift Taxes, IRS Form 709, United States Gift Tax Return, and Instructions for Form 709. They are available at the IRS Web site at IRS.gov in the Forms and Publications section or by calling 800-TAX-FORM (800-829-3676).
January 17th, 2009 at 8:20 pm
You will never pay taxes on a gift. Gift tax is usually paid by the Giver of the gift (your parents) in the IRS tax Publication 950, Introduction to Estate and Gift Taxes it states
“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:”
Basically your parents can each give you a gift tax free gift of $12,000. I would figure that when you receive the money just file it as a gift when you fill out your normal income taxes. Hope this helps.
January 18th, 2009 at 11:37 pm
1. The receiver of the gift does not pay any tax. So you can receive gift of any amount without filing gift tax return.
2. If your parents are U.S. citizen or resident, then they can each give a gift of $12,000 in a year to any number of persons without any gift tax. So both parents can give you $24,000 in a year.
3. If your parents are foreign person, then they can send you any amount. Since they don’t file the U.S. return, they do not pay any gift tax.
Read this for the details: Read
January 22nd, 2009 at 10:22 am
Any amount - you don’t pay income tax on gifts you receive.
You don’t have to fill out any forms, but your bank will most likely report it to the government.