Cash Gift

[fasteddie577]

If my daughter were to give me say $10,000 as a gift, would it have a taxable effect on my social security income? Thanks

[xmasbaby0]

No a gift would have no effect on your Social Security, nor would it go on a tax return.

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-...

[fasteddie577]

The form 709 is required to be submitted, right? Thank you. 

[xmasbaby0 · Accepted solution]

You mentioned a gift of $10,000.   The person who gave the gift does not need to complete a Form 709 unless the gift to one individual is greater than $15,000.   The person who received the gift does nothing at all ---except enjoy the gift.

[fasteddie577]

Thank you. You have been very helpful. Enjoy the rest of your weekend. 

[TMOBV]

Hello, how about if my sister gave my brother a lump sum cash gift of $100,000? This is still way under the federal estate tax/lifetime gift tax exemption of $11.58 million. Does she need to file anything?

[xmasbaby0]

Yes.    If she gave more than $15,000 to a person in one year she needs to file a form 709 gift form.  That does not mean she has to pay tax on the gift--but she is required to file the Form 709 for a gift of that amount.

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-...

[TMOBV]

Thank you.

A follow-up question: The title company from a home sale under my sister's name actually disbursed that amount (portion of the sale) directly to my brother -- that still counts as a reportable (non-taxable) gift event, correct?

[xmasbaby0]

@TMOBV After replying to your question about the gift tax---I saw your other posts----you have been getting help from another TT expert and now I see this is all connected to the sale of a home---information which was not included when you asked about a "gift."   Please go back to the other thread where you were getting help from @ErnieS0 and follow up there.   It gets too confusing when you start different threads for the same or related issues but do not include all of the relevant information.

[TMOBV]

Yes, I will; thank you for the guidance. The other post was specific to 1099-S so I didn't want to ask about 709, so asked the query here, but now realizing that I need more information. Thanks for your help so far!