My wife and I received a check for $20,000 as a gift from a family member. How do we deposit this into our bank without creating tax liability?

[bluelotus711]

The check is written to her “and” I. The gift limit is $16,000 per individual tax free. Do we need to split the deposit between different accounts, or can we simply deposit to our joint account and claim it as separate gifts on tax forms?

[xmasbaby0]

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

[ErnieS0]

The giver of a gift is responsible for any potential tax liability, not the gift recipient.

You can give anyone a gift of up to $16,000 without filing Form 709, the gift tax form. Since the check was made out to you and your wife, the giver was allowed to give you and your spouse $32,000 without having to file a return.

The gift tax return doesn’t mean the giver has to pay any tax. In most cases, it simply reduces the amount that is exempt from the “death tax.” For most people, the lifetime estate and gift tax exclusion ($12.06 million in 2022) is high enough that it doesn’t impact the giver.

See: The Gift Tax Made Simple