How can I receive money as a gift without being taxed or having to declare it for me and the person giving the money, both in California?

[mrgarytaco]

For example, if my adult son wants to contribute money as a gift toward paying some of the principal on my mortgage, what is the limit he can contribute per year without either of us having to declare it or being taxed?

[Anonymous_ · Accepted solution]

The donee (you) has no reporting requirement as the recipient of a gift (assuming you are a U.S. person as is your son).

The donor (your son) can give you (or any one person) up to $16,000 (for 2022) and $17,000 (for 2023) without being required to file a gift tax return (Form 709).

[mrgarytaco]

Thanks for the quick reply. That's exactly what I was looking for. Thank you very much.

[xmasbaby0]

The person who gave money to you might need to file a gift tax form.

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...

[mrgarytaco]

Thanks for the information but @Anonymous_ said "The donor (your son) can give you (or any one person) up to $16,000 (for 2022) and $17,000 (for 2023) without being required to file a gift tax return (Form 709).". Do you have information that says otherwise? Thanks.

[VolvoGirl]

Nothing posted contradicts that.  The amounts are right.   And  if you or your son are married  you can increase the amounts.  So if your son is married he can give you 16,000 and his wife can give you 16,000.  And if you are married they can each give you and your wife 16,000 each.  So actually you can give 16,000 x 4 = 64,000 total.  

[mrgarytaco]

@VolvoGirl, Thanks for the confirmation and that's great information on if any of us are married. Thanks.

[Anonymous_]

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@VolvoGirl wrote:

Nothing posted contradicts that.  The amounts are right. 

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Yes, it actually does; the first link references the 2021 Form 709 instructions for which the annual exclusion is $15,000 while the last link (Forbes) appears to be from 2018.

This is why copying and pasting information without ensuring it is updated has the potential to create confusion.