What are the tax limitations on the $19k cash gift? Before my wife’s grandmother passed she wanted to gift us each some money. Our research showed an individual can receive up to $19k tax free gift per year. Can everyone in a family of four receive this gift tax free when I file jointly with my wife and list our two children as dependents? We opened up a high yield savings account for each of our children in their names and one for my wife and I. Each account received a deposit of $19k. Are we subject to taxes on any of these gifts?
Posted by Fickle_Lavishness_34
8 Comments
The receiver of a gift is never subject to tax. So no.
Important! A gift to your child belongs to your child. Any use by a parent not for the child’s benefit would be considered theft. And it can’t be for routine support of the child. That’s the parent’s legal responsibility.
A gift tax return (Form 709) must be filed for anyone giving more than 19K to the same recipient. So, you can give each child 19K, and your wife can do the same. No gift tax return required. Note the gift tax return is filed by the giver.
Gift tax is on the giver not the recipient. So you are good.
19k is the annual exclusion so a gift tax return isn’t even necessary if she only give 19k per recipient.
So yes she can gift each of you individually 19k this year and this would count for the exclusion so she wouldn’t need to file a gift tax return.
Even if she were to gift over the 19k to one person she likely wouldn’t owe any gift tax as the lifetime exclusion is around 14 million this year.
If she can ever possibly gift that much y’all should be talk to a in real life professional.
There is no tax or reporting requirement on gifts up to $19k per person per year. Everyone in the family can get that amount.
How very generous indeed of your wife’s late grandmother. A thoughtful and generous legacy to all 4 of you.
Receiver of gifts are never subject to tax. Any gift tax and filing obligations are on the giver but given your numbers the grandmother has no tax or filing requirements either
your research is a year behind
and no, you’re not subject to tax. if there was tax due (there’s not) it would have been your grandmother’s liability