• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Support question

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

C

choochoo7

Guest
I have been providing financial support to a young woman for the past year. She is a part time student and does not hold a job .I send her a check from my personal account each month for a total of $4,000, which she deposits in her checking account. She uses this money for monthly living expenses and tuition.She has no other income other than what I provide to her. My question is: Does she have any tax consequences with regard to the money she receives from me, eg gift tax? Does any of this money need to be declared?
 


L

loku

Guest
It the money is a gift, there are no tax consequences to her. Gifts are not subject to income tax and the person who gives the gift would be subject to gift tax if the tax applied. In this case, the gift tax does not apply because there was an annual exclusion of $10,000 for gifts given to one person in 2001. The exclusion is $11,000 for gifts given in 2002.

So there is no reason to declare this money.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top