Gifting cash amounts

A gift is not income for federal income tax purposes.  It's possible that it would be income for purposes of Iowa state income tax, but I doubt it.  I'm not aware of any taxes that the RECIPIENT of a gift has to pay, although, again, it is possible that Iowa has such a statute.  Currently DONORS are allowed to give $14,000 per year to any one party without it being subject to FEDERAL estate and gift tax (depending on where the donor resides, the gift could be subject to state tax, which are generally much smaller amounts.)  Most gifts are not subject to federal tax even if they are over $14,000, however.  First of all, gifts to spouses are not taxable.  It gets complicated, but basically gifts to someone other than a spouse would have to exceed $500,000, cumulatively, to be taxable (although that doesn't obviate the need for the donor to file a gift tax return for smaller gifts over $14,000.)  If you are contemplating that large a gift, you should consult an accountant and/or tax attorney.