blackbetty
Junior Member
What is the name of your state (only U.S. law)? Montana
I am an independent contractor. I am contracted annually, paid monthly via check as well as a percentage of commissions earned by my clients. I received a single check for $25,000 from 3 of my clients. I am told it is a year end gift. I am also told by a 3rd party that this will be considered income and taxed. As I read through the IRS FAQ for Gift Taxes https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes#2 I am unsure if I will be taxed on this additional cash. I am not an employee. I pay my own taxes, insurance, supplies, etc., I work at my own pace and can come and go as I please. I file my annual taxes as such. Am I correct in understanding that the $25,000.00 would technically be split 3 ways equaling $8,333.33 gifted by each of the 3 individual and should be reported as such?
Thanks for your help in advance.
BB
I am an independent contractor. I am contracted annually, paid monthly via check as well as a percentage of commissions earned by my clients. I received a single check for $25,000 from 3 of my clients. I am told it is a year end gift. I am also told by a 3rd party that this will be considered income and taxed. As I read through the IRS FAQ for Gift Taxes https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes#2 I am unsure if I will be taxed on this additional cash. I am not an employee. I pay my own taxes, insurance, supplies, etc., I work at my own pace and can come and go as I please. I file my annual taxes as such. Am I correct in understanding that the $25,000.00 would technically be split 3 ways equaling $8,333.33 gifted by each of the 3 individual and should be reported as such?
Thanks for your help in advance.
BB