QUESTION
Will I have to pay taxes on a gift from my parents?
Asked on Dec 19th, 2010 on Taxation - Illinois
More details to this question:
I will be receiving $26,000 this year from my parents in the form of a gift. Do I need to pay any taxes on this money?
2 ANSWERS
Bruce Givner
If that is the only gift that they are making this year, then a gift tax will not be due. That qualifies under their annual gift tax exclusion ($13,000 per donor per donee). Note that gift taxes, if required, are paid by the donor, not by the donee. Best regards. Also, a gift is not taxable income.
Answered on Dec 21st, 2010 at 1:28 PM
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Gift taxes are taxable to the donor(s), not to the recipient, although a certain amount is exempt.
Answered on Dec 21st, 2010 at 9:58 AM