Question

Cash Gift From Grandma

Forum|Forum|6 years ago
December 28, 2019
2 replies
0 views

If I received a Cash Gift from my grandmother for $20,000 in order to help pay off student loans, what is my tax liability? I know the bank is required to report cash deposits of over 10k, and there is no prove this was a cash gift from a family member, I.E. not income.

DoninGA

A gift received from an individual is not reported on your tax return, regardless of the amount received.

L

lou_renshaw

You don't owe taxes on a gift , but grandma might owe a gift tax. Every year anyone can give each person a certain amount of money and doesn't owe a gift tax. I'm not sure, but I think $20,000 is over that amount. If you can, a better way is for you to give back the money and then have grandma pay the student loans off by sending the money to the loan companies themselves. Then she won't owe a gift tax

X

xmasbaby0

Grandma will not "owe" a gift tax for a gift of $20K, but she will need to file a Form 709 with the IRS since the gift is over the limit of $15,000 to one individual in a year.

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return. Money that you gave as a gift to someone else is not deductible for your taxes.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-11-2-million-per-couple/#3226e75d4a4b

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**