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I received a lawsuit settlement. If I gift my minor child $14,000 this year, do I still have to pay taxes on that as income?
June 4, 2019
5:47 PM
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See the answers to your other question asking the same thing.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4510451-how-can-i-avoid-massive-taxes-from-a-lawsuit-settlement-de...>
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4510451-how-can-i-avoid-massive-taxes-from-a-lawsuit-settlement-de...>
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
June 4, 2019
5:47 PM
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The other question is more broad. But thank you SO much for all your help!
June 4, 2019
5:47 PM
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Here are the IRS guidelines on which types of settlements are taxable: https://www.irs.gov/pub/irs-pdf/p4345.pdf
Gifting part or all of a settlement does not affect its taxability.
The IRS gift exclusion amount for 2018 is $15,000. Gifts of $15,000 or less do not require filing of a gift tax return.
Gifts are not deductible by the donor, nor are they taxable to the recipient.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
June 4, 2019
5:47 PM
Anonymous
Not applicable
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if it is taxable, any amount gifted would still be taxable to you.
June 4, 2019
5:47 PM
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Settlements are not always taxable, it depends on what it was for. But if it is taxable, anything you do with the money after you receive it is treated as a separate event, and gifts are never tax deductible.
June 4, 2019
5:48 PM