Monetary Gifts from In Laws

Forum|Forum|5 years ago
January 30, 2021
2 replies
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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?

xmasbaby0

Level 15

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.

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

**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.**

DoninGA

Level 15

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.