My husband's parents had a college account that they closed and gave us the money which was over $14,000. Do we pay a gift tax on that?

Anonymous · ‎June 4, 2019

MinhT · ‎June 4, 2019

Gifts are not taxable to the recipient. You do not report them on your tax return.

Gifts are not deductible for the donor. The gift exclusion is $14,000 per donor to each donee. If the gifts exceed this limit, the donor has to file a gift tax return (form 709). There is generally no tax to pay as there is a lifetime exclusion $5.5 million for each donor.

Form 709 is not supported by TurboTax.

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View solution in original post

MinhT · ‎June 4, 2019

Gifts are not taxable to the recipient. You do not report them on your tax return.

Gifts are not deductible for the donor. The gift exclusion is $14,000 per donor to each donee. If the gifts exceed this limit, the donor has to file a gift tax return (form 709). There is generally no tax to pay as there is a lifetime exclusion $5.5 million for each donor.

Form 709 is not supported by TurboTax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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My husband's parents had a college account that they closed and gave us the money which was over $14,000. Do we pay a gift tax on that?