Have a Tax Question? Ask a Tax Expert
Thank you for using Just Answer.
As far as income tax, gifts have no effect. Gifts of any amount are not taxable to the receiver nor deductible to the giver.
However, there is a totally separate tax called the gift tax. If you gift more than $13,000 per person per year, then you would need to file a gift tax return. Filing the return doesn't necessarily mean you would owe tax because you have a lifetime gift and estate tax exemption that is currently set at 5 million dollars.
If your gift is $13,000 or less, there is no need to report anything as gift tax or income tax.