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How much taxes are owed on money you received as a gift?

asked by DeDi (81)

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Tags:  gift  money  taxes

answers

Cash received as a gift is tax-free to the recipient. The donor may have to file a gift tax return, but no tax will be owed until lifetime gifts exceed $1 million.

7 votes

Gift tax can be paid by EITHER the giver or the receiver. First 13,000, no tax. Tax rates start at 18 percent and go up to 45 percent. The rates are calculated on IRS form 706. In addition to Federal tax, many states also have gift taxes. Tax depends on the giver's resident state and amount given.

reply
posted by Att4372 (851)
7 votes

You do not pay income taxes on gifts. The person giving the gift may need to file a gift tax return, but often there is not tax due with that as well. the person who gave you the gift should check with their tax preparer/accountant to see if they are required to file.

6 votes

The receiver of the gift doesn't pay taxes on it, only the giver. It'll be taxed as part of their regular income.

5 votes

Really it depends on the amount of money you've received and the state that you are living in during the time you received this money. Check with the state.

4 votes

Most people are not required to pay taxes on gifts that are less that one hundred in value. If you are given a gift and unless it is extremely expensive you need not report it.

4 votes

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