We pay living expenses for our 20yo daughter (not college std). Does she have to pay taxes on the money we provide her? She has a part time job & will file her own taxes.

donhaughton · ‎June 4, 2019

She is pursuing a ballet career and is being provided training by the ballet company. We pay for her ballet training, rent, utilities. She has a part time job and will file taxes for that job, but we were wondering if she needs to include the money we give her as income on her taxes, or as a gift on our taxes.

MaryK1 · ‎June 4, 2019

If it is a gift- given with "no strings attached" with no expectation of exchange or repayment then she as the recipient does not have to report it as income and it is not taxable. For the donor, you may have to file a gift return to report the gift if it is more than the annual exclusion $14,000 (or $28,000 for you and your spouse). If you did gift more, see https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-tax... or ask here.

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MaryK1 · ‎June 4, 2019

If it is a gift- given with "no strings attached" with no expectation of exchange or repayment then she as the recipient does not have to report it as income and it is not taxable. For the donor, you may have to file a gift return to report the gift if it is more than the annual exclusion $14,000 (or $28,000 for you and your spouse). If you did gift more, see https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-tax... or ask here.

**Say "Thanks" by clicking the thumb icon in a post
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We pay living expenses for our 20yo daughter (not college std). Does she have to pay taxes on the money we provide her? She has a part time job & will file her own taxes.