You’re good but is she in the market for another best friend? 😇
Old_Cry1308 on
gifts are not taxable to the recipient, she might need to file a gift tax return.
Bytor_Snow_Dog1 on
You needn’t do a thing except thank her profusely. She needn’t do anything unless this gift combined with all her other gifts this year to you exceeds $19,000, or it puts her over $13.99 million thus far in her life.
Aggravating-Walk1495 on
No.
Gifts are never income to the recipient. So you don’t need to do anything.
She doesn’t need to do anything either. The “annual exclusion” for amounts gifted from any one person, to any one other person, is $19,000 in both 2025 and 2026.
So if this is a one-time gift and she doesn’t ALSO give you another $4,001 or more during the same year, then there’s nothing she needs to file.
Even if she DID do more than that, there’s no actual TAX owed, just filing a gift tax return that helps track progress towards the lifetime gift limit currently of $13.99 million from one person to ALL gift recipients. AFTER that lifetime limit, then gift tax starts to apply.
This all assumes that this is, indeed, a gift by IRS definition, and not a loan, or payment in exchange for anything else.
ClawhammerJo on
It’s not taxable and you (and your friend) don’t have to report it. Taxes on gifts is the responsibility of the person giving the tax. However, Georgia doesn’t have a gift tax and the current federal gift tax reporting threshold is $19K per recipient per year. Anything over $19k per gift would have to be reported but no taxes would be required until the lifetime accrual of gifts over $19k reaches $13.99 million.
orthros on
The basics of gift taxation
1) The recipient of a gift never has to file taxes on the gift – it’s free on your side
2) The giver of a gift can give any individual $19,000 each calendar year (adjusted annually) with no paperwork whatsoever
If she ever wants to give you a larger amount, she can almost certainly do that for free too by filing a form called Form 704. The lifetime limitation is over $10 million so I think she’s safe but if not…. does she have a sister?
7 Comments
Nah
You’re good but is she in the market for another best friend? 😇
gifts are not taxable to the recipient, she might need to file a gift tax return.
You needn’t do a thing except thank her profusely. She needn’t do anything unless this gift combined with all her other gifts this year to you exceeds $19,000, or it puts her over $13.99 million thus far in her life.
No.
Gifts are never income to the recipient. So you don’t need to do anything.
She doesn’t need to do anything either. The “annual exclusion” for amounts gifted from any one person, to any one other person, is $19,000 in both 2025 and 2026.
So if this is a one-time gift and she doesn’t ALSO give you another $4,001 or more during the same year, then there’s nothing she needs to file.
Even if she DID do more than that, there’s no actual TAX owed, just filing a gift tax return that helps track progress towards the lifetime gift limit currently of $13.99 million from one person to ALL gift recipients. AFTER that lifetime limit, then gift tax starts to apply.
This all assumes that this is, indeed, a gift by IRS definition, and not a loan, or payment in exchange for anything else.
It’s not taxable and you (and your friend) don’t have to report it. Taxes on gifts is the responsibility of the person giving the tax. However, Georgia doesn’t have a gift tax and the current federal gift tax reporting threshold is $19K per recipient per year. Anything over $19k per gift would have to be reported but no taxes would be required until the lifetime accrual of gifts over $19k reaches $13.99 million.
The basics of gift taxation
1) The recipient of a gift never has to file taxes on the gift – it’s free on your side
2) The giver of a gift can give any individual $19,000 each calendar year (adjusted annually) with no paperwork whatsoever
If she ever wants to give you a larger amount, she can almost certainly do that for free too by filing a form called Form 704. The lifetime limitation is over $10 million so I think she’s safe but if not…. does she have a sister?