Question

Giving money to a grandchild

Forum|Forum|4 years ago
November 14, 2021
1 reply
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We own a condo as a second home. During covid our granddaughter wasn't able to keep her apartment so we let her stay at our condo. We just ask here to put $500 a month into our savings account to cover expenses. She is now ready to go back on her own. We don't need the money so we would like to return to her the $8,000 she put in the account. Is there any tax ramifications for us or for our granddaughter?

A

Anonymous_

Employee

@patpatchen wrote:

...We don't need the money so we would like to return to her the $8,000 she put in the account. Is there any tax ramifications for us or for our granddaughter?

No, there are no tax ramifications for you nor your granddaughter.

You (as the donor (giver)) would only be required to file a gift tax return (Form 709) if the gift to your granddaughter exceeded $15,000 in any one year.

See https://www.irs.gov/instructions/i709#idm140535814487888