How much money can I give somebody and they don’t have to report it?

Forum|Forum|1 year ago
May 23, 2024
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TurboTax Deluxe Online

Best answer by xmasbaby0

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 ($17,000 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. In 2024 that yearly limit will increase to $18,000.

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

VolvoGirl

Employee

They never have to report it. You might have to file a gift tax return form 709 to deduct the gift off your lifetime exclusion but there won't be any taxes due.

For 2023 the limit is 17,000. So you could give someone 17,000 and if they are married give their spouse 17,000 for a total of 34,000. And if you are married you and your spouse can each give 17,000 to each of them for a total of 68,000.

IRS 709 form,
https://www.irs.gov/pub/irs-pdf/f709.pdf

IRS 709 Instructions,
https://www.irs.gov/pub/irs-pdf/i709.pdf

xmasbaby0Answer

Employee

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.

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hal_Al

Employee

"Gift Tax" is somewhat of a misnomer. Even though a gift tax return may be required, very few people ever actually pay federal gift tax. The purpose of the gift tax return is usually only to document a reduction in the allowable estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/INF12127.html