QUESTION
Do we have to pay gift tax on money given to us for our wedding and why?
Asked on Sep 16th, 2015 on Taxation - Michigan
More details to this question:
My father in law gave us $11,000 this year for our wedding. I read under IRC 2503 that gifts up to $10,000 are not taxed. Does this mean we have to pay taxes on this money?
4 ANSWERS
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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Money received as a gift is not taxable to the recipient.
Answered on Sep 17th, 2015 at 10:38 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You number is wrong, especially if the us is correct, you received $5500 each. The answer is no.
Answered on Sep 16th, 2015 at 12:04 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, for three reasons. First, the annual gift tax exclusion in 2015 is $14,000. Second, the annual gift tax exclusion is by person, so the father-in-law is counted as giving 1/2 the gift to the husband and 1/2 to the wife (if the father-in-law is married then 1/2 the gift is treated as from his wife. So a married couple can give $56,000 to another married couple. Third, the gift tax is imposed on the donor not the recipient, so if there was a gift tax, the father-in-law would have to pay it. Not you.
Answered on Sep 16th, 2015 at 11:37 AM
Actually, gifts up to $14,000 are exempt from tax. Furthermore, because this was a gift to the 2 of you (presumably) the exemption amount would be $28,000 ($14,000 for each of you).
Answered on Sep 16th, 2015 at 11:21 AM