topic If I Give $5000 to each of my children - does it reduce my taxes or increase thiers? in Get your taxes done using TurboTax

If I Give $5000 to each of my children - does it reduce my taxes or increase thiers?

acinrek — Sat, 01 Jun 2019 00:45:05 GMT

Neither. A gift given to an individual is not reported o...

DoninGA — Sat, 01 Jun 2019 00:45:07 GMT

Neither. A gift given to an individual is not reported on your tax return. A gift received from an individual is not reported on a tax return, regardless of the amount received.

If the gift given is greater than $14,000 to a single individual, then the gift giver has to report the gift on IRS Form 709.

Form 709 is a Gift Tax return. "Gift Tax" is somewhat of...

Hal_Al — Sat, 01 Jun 2019 00:45:09 GMT

Form 709 is a Gift Tax return. "Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html">https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html</a>

However, the children can claim their gift as non taxable...

SweetieJean — Sat, 01 Jun 2019 00:45:13 GMT

However, the children can claim their gift as non taxable income for purpose of the sales tax deduction if they itemize.