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SWR- Taxes & Weddings Out of the blue question

Nuttela Posted: Jun 23, 2006 07:33 AM+

Nuttela MEMBER SINCE: 11/05 TOTAL POSTS : 495 WEDDING DATE: Aug 26, 2006

Posted: Jun 23, 2006 07:33 AM

SWR- Taxes & Weddings Out of the blue question

I don't know why I was thinking about this, but does anyone know if you have to claim the gifts received at a wedding in your federal/state taxes. I am not sure how that works?

Anyone have any ideas?

TIA

Meaghan729 Posted: Jun 23, 2006 07:58 AM+

Meaghan729 MEMBER SINCE: 1/06 TOTAL POSTS : 2456 WEDDING DATE: Jul 29, 2007

Posted: Jun 23, 2006 07:58 AM

Re: SWR- Taxes & Weddings Out of the blue question

Posted by Nuttela

I don't know why I was thinking about this, but does anyone know if you have to claim the gifts received at a wedding in your federal/state taxes. I am not sure how that works?

Anyone have any ideas?

TIA

I dont think so.....but Id ask an accountant.

ali120206 Posted: Jun 23, 2006 08:18 AM+

ali120206 MEMBER SINCE: 10/05 TOTAL POSTS : 4385 WEDDING DATE: Dec 02, 2006

Posted: Jun 23, 2006 08:18 AM

Re: SWR- Taxes & Weddings Out of the blue question

The gift policy for taxes is based on a per gift basis as opposed to a total gifts basis. I think the limit for a year is now $12.5 k from one person (not from one couple) to one person.

So, hypothetically, unless a couple wants to give you and your FH over $50k, you don't need to claim it.

Nuttela Posted: Jun 23, 2006 08:59 AM+

Nuttela MEMBER SINCE: 11/05 TOTAL POSTS : 495 WEDDING DATE: Aug 26, 2006

Posted: Jun 23, 2006 08:59 AM

Re: SWR- Taxes & Weddings Out of the blue question

That is great to know.

Thanks for the info.

kkouril Posted: Jun 23, 2006 10:19 AM+

kkouril MEMBER SINCE: 4/06 TOTAL POSTS : 84 WEDDING DATE: Sep 29, 2006

Posted: Jun 23, 2006 10:19 AM

Re: SWR- Taxes & Weddings Out of the blue question

A gift is not taxable to the receiver. If a person makes a gift over $12k (2006 annual gift exclusion amount) to one person, they have to report the gift on their annual gift tax return and pay the tax themself (a little more complicated but the reciever of a gift does not have to pay taxes on a gift).

ahall04 Posted: Jun 23, 2006 10:23 AM+

ahall04 MEMBER SINCE: 2/06 TOTAL POSTS : 1229 WEDDING DATE: Oct 21, 2006

Posted: Jun 23, 2006 10:23 AM

Re: SWR- Taxes & Weddings Out of the blue question

That's a great question! Glad you ladies know what you are talking about!!!

DanaRenee Posted: Jun 23, 2006 10:40 AM+

DanaRenee MEMBER SINCE: 11/05 TOTAL POSTS : 845 WEDDING DATE: Oct 28, 2006

Posted: Jun 23, 2006 10:40 AM

Re: SWR- Taxes & Weddings Out of the blue question

Yes $12,000, and the annual gift exclusion for married couples is $24,000 for 2006 ($12,000 each).

Also, the donee does not have to include the gift in their income, and they do not pay tax on the gift received.

klingklang77 Posted: Jun 23, 2006 10:47 AM+

klingklang77 MEMBER SINCE: 10/05 TOTAL POSTS : 1915 WEDDING DATE: Jul 16, 2006

Posted: Jun 23, 2006 10:47 AM

Re: SWR- Taxes & Weddings Out of the blue question

but if you put it in a bank account, wont you get taxed on it? at the end of the year you get that interest income from the bank.

DanaRenee Posted: Jun 23, 2006 10:52 AM+

DanaRenee MEMBER SINCE: 11/05 TOTAL POSTS : 845 WEDDING DATE: Oct 28, 2006

Posted: Jun 23, 2006 10:52 AM

Re: SWR- Taxes & Weddings Out of the blue question

Posted by klingklang77

but if you put it in a bank account, wont you get taxed on it? at the end of the year you get that interest income from the bank.

You will not get taxed on the orginal $12000 gift, but you will get taxed on the interest income it earns ... which, if its in a normal bank is very little!!