Question: if my mother-in-law gifts us 15k in 2020...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

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?

 
3 Replies
Level 6

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?

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

Level 15

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?

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.  

Level 15

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?

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-...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Dynamic Ads
v
Privacy Settings