If my dad wants to gift each of his6 children several thousand dollars for Christmas, will we have to claim this on our tax returns?
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If my dad wants to gift each of his6 children several thousand dollars for Christmas, will we have to claim this on our tax returns?
Asked on December 7, 2011 under Bankruptcy Law, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. If you are given any money as a gift by your father it is tax free and does not need to be reported under your tax returns. Gifts are non-taxable events. However, your father needs to be aware that amounts given in excess of $13,000 per year per each individual would be subject to a gift tax return by him.
Under the scenario above, one can give $13,000 in a given year to 100 people each ($1,300,000 total) and not have to pay a gift tax.
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