- Days left
Someone wants to give you a gift of money (lucky you!) but you don't know what to do in terms of your tax return. Rest easy! As the receiver of the gift, you don't have to do anything. I admit it... the tax rules surrounding gifts are a bit counterintuitive. The giver of the gift is the one who might have to report the gift and pay any taxes associated with it. How's that for encouraging them to give you gifts?

Seriously, though... The rules go like this. In 2007, a person could give a gift of up to $12,000 per person, without having to report it to the IRS. Married couples can gift up to $24,000 to someone without having any gift tax consequences, because this essentially equals each of them giving the person $12,000.

The gifts included in this rule include money, property, or the use of property. Items that are usually excluded from the gifting rules include tuition paid directly to the school, medical bills paid directly to the provider, gifts to a spouse, gifts to a political organization, and gifts to charities. More information on gift taxes can be found in Publication 590, Introduction to Estate and Gift Taxes.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Goal Setting

Want to succeed? Then you need goals!

View Course »

Building Credit from Scratch

Start building credit...now.

View Course »

TurboTax Articles

Incentive Stock Options

Some employers use Incentive Stock Options (ISOs) as a way to attract and retain employees. While ISOs can offer a valuable opportunity to participate in your company's growth and profits, there are tax implications you should be aware of. We'll help you understand ISOs and fill you in on important timetables that affect your tax liability, so you can optimize the value of your ISOs.

What is a 1098-E: Student Loan Interest

If you're currently paying off a student loan, you may get Form 1098-E in the mail from each of your lenders. Your lenders have to report how much interest you pay annually. Student loan interest can be deductible on federal tax returns, but receiving a 1098-E doesn't always mean you're eligible to take the deduction.

Add a Comment

*0 / 3000 Character Maximum