Wedding Money

JennLC Thread views: 442

Wedding Money

I am totally clueless when it comes to the IRS and money, but do you have to claim the money you get from people at the wedding? Won't the government be wondering why you have an extra 15,000-20,000 in the bank?

karen32 Thread views: 442

Re: Wedding Money

Gifts are never taxable to the recepient. In the event that one person gives you over $10,000 then they will have tax consequences. You and DH never will.

JennLC Thread views: 442

Re: Wedding Money

Thanks a bunch! I don't think we will be getting any gifts over 10,000, but you never know!

bride04 Thread views: 442

Re: Wedding Money

Wow! I probably won't have to worry about that either! But I guess I could deal with the taxes if someone was willing to give me $10,000!

karen32 Thread views: 442

Re: Wedding Money

Heck, if somebody is willing to give me $10,00 - I will pay their share of the taxes for them You'll still be up!!!!!

JennLC Thread views: 442

Re: Wedding Money

Same here! How much would be left though, after taxes? Math is not my subject.

karen32 Thread views: 442

Re: Wedding Money

Not 100% sure of the gift tax rates right now - but I think you would have $9,750 or so left after taxes. Not too bad!!!!!

lilmrs Thread views: 442

Re: Wedding Money

what are the tax rates right now?? I am trying to figure it out for someone.

karen32 Thread views: 442

Re: Wedding Money

Debbie -

My 2002 Master Tax guide is in my office, but according to the 2001 version - the rate goes from 18% to a whopping 55%

I can give you more accurate #'s tomorrow when I get to the office!

lilmrs Thread views: 442

Re: Wedding Money

Do they change with the amount?

karen32 Thread views: 442

Re: Wedding Money

yes - the higher the $$, the higher the tax rate.

In 2001 -
gifts between $10k and 20k are taxed at 20%;
gifts between $100k and 150k are taxed at 30%; gifts $3m + are taxed at 55%