You don't know me at all, Now SheWolf Promoter.
A lot of us liked her for herself and still do.
As far as her needing to pay tax, I don't practice tax law, but I do not think she needs to report these gifts as income to the IRS (which is an entirely different set of rules than those of "income" limits for food stamps). Maybe Roger has a view on that.
I couldn't remember if he told me it was the giver or receiver, I thought he said it was tax free for the receiver, ten grand once a year.
In that case, I don't think shewolf needs to worry about paying taxes on the donations. It definitely would fall under "gift tax" and it's not (yet) in the 5 digits
Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.
What is considered a gift?
Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.
What can be excluded from gifts?
The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.
Gifts that are not more than the annual exclusion for the calendar year.
Tuition or medical expenses you pay for someone (the educational and medical exclusions).
Gifts to your spouse.
Gifts to a political organization for its use.
In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.
May I deduct gifts on my income tax return?
Making a gift or leaving your estate to your heirs does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions). If you are not sure whether the gift tax or the estate tax applies to your situation, refer to Publication 950, Introduction to Estate and Gift Taxes.
How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift.
What if my spouse and I want to give away property that we own together?
You are each entitled to the annual exclusion amount on the gift. Together, you can give $22,000 to each donee (2002-2005) or $24,000 (2006-2008), $26,000 (2009-2012) and $28,000 on or after January 1, 2013.
So I wasn't an ass for bringing this up?
ossobuco wrote:So I wasn't an ass for bringing this up?
Not in my book.
Who is responsible for making sure the requisite taxes are paid?
General Program Requirements
In order to qualify for this benefit program, you must be a resident of the state of Texas and fall into one of two groups: (1) those with a current bank balance (savings and checking combined) under $2,001, or (2) those with a current bank balance (savings and checking combined) under $3,001 who share their household with a person or persons age 60 and over, or with a person with a disability (a child, your spouse, a parent, or yourself). For either group, you must also have an annual household income of less than $14,079 if one person lives in the household; $18,941 if two people live in the household; $23,803 if three people live in the household; $28,665 if four people live in the household; $33,527 if five people live in the household; $38,389 if six people live in the household; $43,251 if seven people live in the household; or $48,113 if eight people live in the household. For larger households, add $4,862 for each additional person in the home.