Will I have to pay taxes on a gift from my parents? 4 Answers as of December 21, 2010

I will be receiving $26,000 this year from my parents in the form of a gift. Do I need to pay any taxes on this money?

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Givner & Kaye
Givner & Kaye | Bruce Givner
If that is the only gift that they are making this year, then a gift tax will not be due. That qualifies under their annual gift tax exclusion ($13,000 per donor per donee). Note that gift taxes, if required, are paid by the donor, not by the donee. Best regards. Also, a gift is not taxable income.
Answer Applies to: California
Replied: 12/21/2010
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
Gift taxes are taxable to the donor(s), not to the recipient, although a certain amount is exempt.
Answer Applies to: Illinois
Replied: 12/21/2010
LT Pepper Law
LT Pepper Law | Luke T. Pepper
You do if it crosses the gift threshold. Check on line at IRS site to see what the threshold is. Best to have your parents write two checks.
Answer Applies to: Pennsylvania
Replied: 12/21/2010
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
No- the recipient generally never pays the gift tax. Your parents will also not pay gift tax as this amount is covered by their annual exclusion.
Answer Applies to: California
Replied: 12/20/2010
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