My parents want to gift me between $30,000 and $40,000 this year. What are the rules/laws, the tax implications and what forms do we need to submit to the IRS?

[emenicocci]

I read that each parent can gift up to $17,000 for 2023. Can this come from my parents' joint account or an account that only has one name on it?

[MinhT1]

The gift exclusion limit is $17,000 for tax year 2023.

So for 2023. each parent can gift you $17,000, for a total of $34,000 without them having to file a gift tax return.

The gift is not taxable to you and you do not report it on your tax return.

It is not deductible for your parents. If the amount exceeds $17,000 per donor to a recipient, the donor has to file a gift tax return (form 709). That form is not supported by TurboTax.

It does not matter whether the money gifted comes from a joint account or a bank account of one of the parents.

[emenicocci]

Can I ask another question? 

I have also seen that a parent can gift up to $12 million as part of a lifetime gift without being taxed. What is the difference between the $12 million lifetime gift and the $17,000 gift exclusion? Thanks!

[Vanessa A]

The $17,000 is the amount they can give you per person without it counting as part of the $12,920,000 lifetime exclusion.

So even though they will need to file a form 709 to report that they are giving you the gift if it is over $17,000, they would not need to pay taxes on it unless they exceeded the lifetime exclusion amount of $12,920,000 in 2023.  This amount does change yearly and is potentially set to drop drastically in 2026, when the current tax laws expire. 

[Mike9241]

if coming from a joint account each parent should sign their check for 1/2 the total. at $30K (15K each) no gift tax return above $32,000 (over $16K each)  a return is required.