topic Question: if my mother-in-law gifts us 15k in 2020, than gifts us let's say 10K in 2021. Since the gifts were in different calendar years, she should not be taxed in it. Correct? in Deductions & credits

Question: if my mother-in-law gifts us 15k in 2020, than gifts us let's say 10K in 2021. Since the gifts were in different calendar years, she should not be taxed in it. Correct?

cmorgan-law81 — Tue, 29 Dec 2020 17:29:57 GMT

Re: Question: if my mother-in-law gifts us 15k in 2020, than gifts us let's say 10K in 2021. Since the gifts were in different calendar years, she should not be taxed in it. Correct?

M-MTax — Tue, 29 Dec 2020 17:33:05 GMT

Right.....annual exclusion is $15k per person.

Re: Question: if my mother-in-law gifts us 15k in 2020, than gifts us let's say 10K in 2021. Since the gifts were in different calendar years, she should not be taxed in it. Correct?

VolvoGirl — Tue, 29 Dec 2020 17:33:37 GMT

Right. It does not get reported on anyone's tax return. And she wouldn't be taxed anyway. If someone gives more than $15,000 to any one person per year, the giver might have to file a gift tax return form 709 to deduct the gift off their lifetime 5.43 million dollar exclusion but there won't be any taxes due.

And actually it is 15,000 per person for 2019. So she could give you 15,000 and your wife 15,000. And if she is married her husband can give you each another 15,000. So a grand total of 60,000 per year. Don't know what the limit is for 2020 or 2021. It might be more.

Re: Question: if my mother-in-law gifts us 15k in 2020, than gifts us let's say 10K in 2021. Since the gifts were in different calendar years, she should not be taxed in it. Correct?

xmasbaby0 — Tue, 29 Dec 2020 17:36:35 GMT

That is correct. The amount is $15K to each person per year that can be gifted without having to complete a gift tax form 709. There is not actual tax to pay on the gift unless the amounts of gifts exceed a lifetime limit of over $11million.

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-11-2-million-per-couple/#3226e75d4a4b