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

Answer by  cgroverla (516)

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.

Answer by  Att4372 (1704)

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.

Answer by  Chaneygirl (1755)

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.

Answer by  Gabriel (2146)

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

Answer by  Roland27 (16334)

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.

Answer by  flamiss22 (5081)

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.