Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Apr 18, 2025 5:31:03 PM

what if a parent gave a child $100,000 as a gift? do they owe taxes?

What if a parent gave a child $100,000 as a gift? Do they owe taxes? Federal and on a California level? Parent, or child?

 

Please explain and thanks!

0 3 2127
3 Replies
Level 15
Apr 18, 2025 5:38:24 PM

 

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

 

If your gift exceeds the yearly limit ($18,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.

 

TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.

 

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

 

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

New Member
Apr 18, 2025 6:05:52 PM

ok thanks! why unlikely pay any tax exactly?

Level 15
Apr 18, 2025 6:09:07 PM

@askingtaxqs1 Please read the article that was linked--it is explained.