Tax Tips Get on This Gift List, if You Can Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Published Dec 15, 2009 - [Updated Sep 8, 2017] 1 min read The end of the year is a season for gift giving. It also marks the deadline for an often misunderstood kind of yearly gift giving, endorsed by the IRS. I’m not talking about donations to charities, but rather gifts from one person to another. For example, parents decide to give money to a grown child who needs a down payment for a house. Or perhaps a sister wants to help out a brother who’s struggling financially. For the year 2009, any person can give up to $13,000 to any other person without risk of having to pay a gift tax. How an “IRS approved” gift works What that means in practical terms is that a married couple, for example, could each give $13,000 to each of their two children. Thus each parent then could give as much as $26,000, for a combined total of $52,000 in 2009. Each child could receive as much as $26,000. If the parents are feeling generous, they could also each give up to $13,000 to the wife’s unemployed brother. However, giver and receiver don’t have to be related. By giving no more than the $13,000 limit, the giver avoids the possibility of having to pay a gift tax and the need to report the gift to the IRS. One of the nifty things about the gift tax exclusion is that neither the giver nor the recipient has to report a gift on income tax returns. You can be generous and avoid the paperwork. Just remember that if you don’t make a gift by December 31, the opportunity for 2009 goes away. Previous Post Volunteer When Job Hunting Next Post Shed Holiday Pounds, Get a Tax Deduction Written by More from 2 responses to “Get on This Gift List, if You Can” Anonymous – check out this FAQ on the Gift Tax…it should help you http://turbotax.intuit.com/tax-tools/tax-tips/tax-planning-and-checklists/5533.html Ashley Reply How do you enter the gift amount in Turbo Tax? Is there are section in there to reduce your income tax? Thanks! Reply Leave a ReplyCancel reply Browse Related Articles Tax Planning TurboTax Enables Refund Advance to Taxpayers Investments Tax Benefits of Real Estate Investing Self-Employed Business Tax Checklist: What You’ll Need When Filing Uncategorized What Is Deferred Compensation & How Is It Taxed? Investments How Does an Inherited IRA Work? Work Choosing Your Business Structure: 5 Types of Businesses… Tax Deductions and Credits Are HOA Fees Tax Deductible? What You Need to Know Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home
Anonymous – check out this FAQ on the Gift Tax…it should help you http://turbotax.intuit.com/tax-tools/tax-tips/tax-planning-and-checklists/5533.html Ashley Reply
How do you enter the gift amount in Turbo Tax? Is there are section in there to reduce your income tax? Thanks! Reply