How much can my in laws gift to my wife and I annually in 2021 before they are charged with the gift tax? Is there an income threshold for my wife and I before we have to pay tax on the monetary gift?
YOU do not pay any tax on a gift you received. And the in-laws do not pay tax on gifts they give to you unless the somehow exceed a lifetime maximum of over $11 million.
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:
Gifts received are not entered on a tax return, regardless of the amount received.
The gift giver does not have to report a gift given if the amount is $15,000 or less per individual per year. If the amount is greater than $15,000 then a Form 709 has to be completed by the gift giver. However, no gift taxes are assessed unless the cumulative gifts ever given exceed $11.58 million.
TurboTax does not support IRS Form 709.