so my mom said she's going to give me $ as a wedding gift then said 'i wonder if i could file this on my return'. i then thought, if she's going to file it, does that mean i have to file it too as an added income?
honestly, i was shocked and disappointed i'm not really at the best of terms with her but i thought it was nice of her to give me such a generous amount... until that darn question came up. i thought it was a gift, but now its sounding like a business transaction!!! sheesh! i'm not gonna lie and say i don't need her gift BUT i thought the whole purpose of giving a gift is to give and not expect anything in return. wth?!?!
am i being selfish? i just want a mom who wants me to be happy! not someone whose planning on generating some money or what not out of MY DAY!
btw, i looked at irs.gov and it only mentioned Gift tax for those who are donating/giving. i have yet to find an article on what the receiver has to do. any accountant out there or anyone who has knowledge in this?
I believe the limit is up to $12,000 from one person is not taxable ....so if she gives you more then $12,000 you would need to report this on your tax return. If its less then you do not.
eta: just to clarify, the $12k limit is based on one check, not as a whole deposit....so if you deposit 10 checks that total $12k its not taxable...but if you deposit one check for $12k then its taxable....hope this makes sense.
I believe the limit is up to $12,000 from one person is not taxable ....so if she gives you more then $12,000 you would need to report this on your tax return. If its less then you do not.
eta: just to clarify, the $12k limit is based on one check, not as a whole deposit....so if you deposit 10 checks that total $12k its not taxable...but if you deposit one check for $12k then its taxable....hope this makes sense.
if your mom is giving you less than $13,000 (including anythign she's given you throughout 2010), then she is using her annual exclusion amount. it is not a taxable gift as to her (and it is DEFINITELY not tax deductible).
nor is it included as income to you. gifts are generally not subject to income tax., only gift tax and the donor pays the tax on gifts (unless they're exempt such as for the annual exclusion).
FM if you need mroe info.
eta: your mom also has a $1,000,000 lifetime exemption. so even if the amount she wants to give you is greater than $13,000, it is not necessarily a taxable gift bc she may use up part of her lifetime exemption
I believe the limit is up to $12,000 from one person is not taxable ....so if she gives you more then $12,000 you would need to report this on your tax return. If its less then you do not.
eta: just to clarify, the $12k limit is based on one check, not as a whole deposit....so if you deposit 10 checks that total $12k its not taxable...but if you deposit one check for $12k then its taxable....hope this makes sense.
if your mom is giving you less than $13,000 (including anythign she's given you throughout 2010), then she is using her annual exclusion amount. it is not a taxable gift as to her (and it is DEFINITELY not tax deductible).
nor is it included as income to you. gifts are generally not subject to income tax., only gift tax and the donor pays the tax on gifts (unless they're exempt such as for the annual exclusion).
FM if you need mroe info.
eta: your mom also has a $1,000,000 lifetime exemption. so even if the amount she wants to give you is greater than $13,000, it is not necessarily a taxable gift bc she may use up part of her lifetime exemption
if your mom is giving you less than $13,000 (including anythign she's given you throughout 2010), then she is using her annual exclusion amount. it is not a taxable gift as to her (and it is DEFINITELY not tax deductible).
nor is it included as income to you. gifts are generally not subject to income tax., only gift tax and the donor pays the tax on gifts (unless they're exempt such as for the annual exclusion).
FM if you need mroe info.
eta: your mom also has a $1,000,000 lifetime exemption. so even if the amount she wants to give you is greater than $13,000, it is not necessarily a taxable gift bc she may use up part of her lifetime exemption
As these ladies said, you don't have anything to worry about if it's under the threshold, but either way, she probably should have used her inside voice for that one...
I understand, I would be mad too and I am not on the best terms with my mother either...but no, you do not have to claim wedding gifts as taxable income, simply because it isn't!!! Don't worry!!
the limit after 2009 for exempted gifts is $13,000. if more than 13k your mom would be responsible for the tax not you. Here is some IRS info on gifting FAQs.
