Pay Taxes on This?

my understanding is that a cash gift under $10,000 (within a calendar year) is exempt from tax and you do not have to claim it. if it's more than that, it is taxable.

As long as it was less than $12,000 per person giving money, then you won't have to pay taxes. I think you still claim it on your taxes but don't have to actually pay taxes on it.

Here is the info from IRS.gov
http://www.irs.gov/publications/p950/ar02.html#d0e235

Hi N. S
My MOther gave me 10,000.00 as a gift about 10 years ago, I was going to get a money order for it at the bank and was informed that would bring me over the amount taxed by the IRS. So as of 10 years ago anything under 10,000.00 that was a gift was not taxable in a calendar year.

good luck

V.

Hi N. -
I don't know that much about the tax implications but, we are doing a benefit for my daughter in a couple of weeks. The event planner we are working with advised us to get an EIN number to track the funds so that we were on the up and up. It was super easy to get. YOu can actually go to the IRS website and apply for it and print the number off right then. I have no idea what nightmare I have ahead of me in Jaunary with filing taxes though. Hope that helps a little.

Hi,

Unless you have specifically set up a nonprofit organization/fund, you did not recieve a charitable donation, you received a gift. There is such a thing as a gift tax. However, it's the person giving the gift who pays this tax, and wouldn't apply unless the giver gave you more than $13,000 in a year. Many times people have fundraiser benefits for someone who is experiencing a health or other crisis. These don't automatically become charities. There are specific legal and tax criteria that must be met. Unless someone established a charitible trust for you, or you raised money under an umbrella organization such as COTA, Salvation Army, etc., it sounds like this would just be a flat out gift. So, whoever is giving you the money would also not be able to deduct it as a charitable donation.

are they writting it off as a donation? if not i don't think you have to do anything. otherwise i'm not sure...

Hi N.,
To be 100% certain all the 800 number in the front of the phone book to get an IRS agent. They will give you all the correct information so you don't make an mistake and end up with a bill at the end!
Better safe than sorry when dealing with the goverment!

N.,

I believe that it depends on how much you are given and who is giving it. People cannot give large sums of money away to defer paying taxes themselves but if it is a family member giving a gift to a loved one that is a different story. As I said above it will also depend on how much is given to you and for what reason. If it is just a couple thousand dollars given to a daughter from a parent why would you claim it on your taxes. It is a gift, maybe birthday, Christmas, etc.
Family members can help out other family members but if this is someone who is giving you this money and planning on writing it off on their taxes as a charitable that will not work unless you are a charity.
If this is a charity such a church gifting you money because you have fallen on hard time, again it is a gift that you should not have to pay taxes on. A church is a non-for-profit organization and the money they are giving you was donated by individuals to the church not to you.
My son asked the congregation to donate money for his missions trip last your. The money was collected and the church gave the money to him. There was no taxes that needed to be paid.
Since we do not know the amount or the circumstances behind this gift you might wish to call an account or do an internet search for the answer to your question, like www.ask.com .

S.

Hey, N.,

I don't know about your tax situation, but you might explore having your benefactor pay your tuition and/or buy your books directly, if that's where the donation will go. Meanwhile, you are a formidable woman and I am sure a wonderful mom who ought to hear it once in awhile!!!!

Good luck,
Mama S.