Does debt have anything to do with taxes?

[poorteacher]

What is the name of your state? In 2004 I worked for 6 months in Florida and 6 months in New Mexico.

If my mother in law paid off my $12,000 credit card bill, whether all at once or in small installments, would I (or she) have to pay taxes on the money? I don't think the tax return forms ask anything about debt, and I'm wondering who would even know the difference if I no longer had credit card debt.

PoorTeacher in New Mexico

 

[Snipes5]

Your mother can gift you $11,000 in one year without having to file a gift return. No tax will be due, it will just need to be filed.

There is no tax on "gifted" money, so you don't report it anywhere.

Snipes