Gift Tax
Gift Tax Do you need to pay taxes when you receive a gift or gift is not taxable? It is interesting to note that gift tax is imposed on the giver unlike any other provisions of the income tax. We are knew very well that taxes are paid by the person who receives the money. However incase gifts, it is opposite. The person who receives gift has no obligation even to report. However, the person who gives gift is required to report or file return and pay gift tax in case gift cross a certain threshold. The gift that you received is not an income to you, and you may enjoy it in full with out any tax burden. But the giver might required to pay tax in some situations. Gifts of small amount is not taxed or should be reported. How small? Gift up to $17,000 to a an individual in 2023 if you are single and gift up to $34,000 if you split it between you and your spouse, and there is no obligation to report or pay taxes. If you give small gifts, reporting and gift tax can be ...