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nguyengo
New Member

If I give my son $60,000 to pay part of his student loan, do I have to pay taxes? And does he have to pay taxes?

 
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DoninGA
Level 15

If I give my son $60,000 to pay part of his student loan, do I have to pay taxes? And does he have to pay taxes?

A gift given to an individual is not reported on a federal tax return.  A gift received from an individual is not reported on a federal tax return, regardless of the amount received.

Gifts given of greater than $14,000 to a single individual in a year are to be reported on an IRS Form 709 Gift Tax return.  TurboTax does not support Form 709.

There will not be any taxes owed on the gift given if the total amount of gifts given in your lifetime have not exceeded $5.45 million in 2016.

IRS Form 709 - https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS Form 709 instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

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DoninGA
Level 15

If I give my son $60,000 to pay part of his student loan, do I have to pay taxes? And does he have to pay taxes?

A gift given to an individual is not reported on a federal tax return.  A gift received from an individual is not reported on a federal tax return, regardless of the amount received.

Gifts given of greater than $14,000 to a single individual in a year are to be reported on an IRS Form 709 Gift Tax return.  TurboTax does not support Form 709.

There will not be any taxes owed on the gift given if the total amount of gifts given in your lifetime have not exceeded $5.45 million in 2016.

IRS Form 709 - https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS Form 709 instructions - https://www.irs.gov/pub/irs-pdf/i709.pdf

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