Tax Tips Get on This Gift List, if You Can Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Published Dec 15, 2009 - [Updated Sep 8, 2017] 1 min read The end of the year is a season for gift giving. It also marks the deadline for an often misunderstood kind of yearly gift giving, endorsed by the IRS. I’m not talking about donations to charities, but rather gifts from one person to another. For example, parents decide to give money to a grown child who needs a down payment for a house. Or perhaps a sister wants to help out a brother who’s struggling financially. For the year 2009, any person can give up to $13,000 to any other person without risk of having to pay a gift tax. How an “IRS approved” gift works What that means in practical terms is that a married couple, for example, could each give $13,000 to each of their two children. Thus each parent then could give as much as $26,000, for a combined total of $52,000 in 2009. Each child could receive as much as $26,000. If the parents are feeling generous, they could also each give up to $13,000 to the wife’s unemployed brother. However, giver and receiver don’t have to be related. By giving no more than the $13,000 limit, the giver avoids the possibility of having to pay a gift tax and the need to report the gift to the IRS. One of the nifty things about the gift tax exclusion is that neither the giver nor the recipient has to report a gift on income tax returns. You can be generous and avoid the paperwork. Just remember that if you don’t make a gift by December 31, the opportunity for 2009 goes away. You know your small business—we know business taxes. Our self-employed and business tax experts will ensure you get every tax break with 100% accuracy, guaranteed. Start for free 100% free to start. Pay only when you file. Previous Post Volunteer When Job Hunting Next Post Shed Holiday Pounds, Get a Tax Deduction Written by More from 2 responses to “Get on This Gift List, if You Can” Anonymous – check out this FAQ on the Gift Tax…it should help you https://turbotax.intuit.com/tax-tools/tax-tips/tax-planning-and-checklists/5533.html Ashley Reply How do you enter the gift amount in Turbo Tax? Is there are section in there to reduce your income tax? Thanks! Reply Leave a ReplyCancel reply Browse Related Articles Tax Help How to File a Business Tax Extension: Deadlines, Forms, and Penalties Tax Tips The White Lotus Tax Lessons: Navigating Gift Taxes, Lump Sum Payouts, Hush Money, and the IRS Tax Questions What Day Are Taxes Due? April 15! How to File for a Tax Extension or Pay Taxes Online Tax Questions What Happens If You File Your Taxes Wrong? Late Filing Penalties, Interest, and More Tax Questions What’s Tax Deductible? A Guide to Mortgage Interest, Long-Term Care, Funeral Expenses, Student Loans, and Roth IRA Contributions Tax Questions Is it Better to Get Your Taxes Done or Do Them Yourself? (And Other Tax Questions Answered) Tax Forms What is a 1099-K Form? How to Report Payments on Your Tax Return (2024) Tax Forms What is a 1099 Form? A Guide to Understanding Your Tax Obligations Income Tax by State Wisconsin State Income Tax in 2025: A Guide Income Tax by State West Virginia State Income Tax in 2025: A Guide
Anonymous – check out this FAQ on the Gift Tax…it should help you https://turbotax.intuit.com/tax-tools/tax-tips/tax-planning-and-checklists/5533.html Ashley Reply
How do you enter the gift amount in Turbo Tax? Is there are section in there to reduce your income tax? Thanks! Reply