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FiveStarLaw
FiveStarLaw, Tax Attorney
Category: Tax
Satisfied Customers: 36470
Experience:  25 years of experience helping people like you.
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I LIVE IN NEW YORK. I WOULD LIKE TO KNOW THE MAXIMUM MONETARY

Resolved Question:

I LIVE IN NEW YORK. I WOULD LIKE TO KNOW THE MAXIMUM MONETARY GIFT A PERSON CAN RECEIVE IN A YEAR THAT IS TAX EXEMPT. THANK YOU
Submitted: 1 year ago.
Category: Tax
Expert:  FiveStarLaw replied 1 year ago.
*This chat is not intended as legal or tax advice. It is general information that may or may not apply to your situation and should not be relied upon*


Hello,

My name is FiveStarLaw. Although I am a New York lawyer, my answers are information only and do not form an attorney/client relationship.

I will do my best to provide you with helpful information. If the information which I provide is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.

The recipient of a gift does not pay tax on either the federal or New York state level - regardless of the amount received.

Only the donor of the gift pays gift tax.

The annual gift tax exclusion for both New York and federal purposes is currently $13,000.

I think this is what you wanted to know. Please let me know if I have answered your question or whether you would like further information.
Customer: replied 1 year ago.

Money given to me for whatever purpose I will use it like pay medical bills, credit card etc. is considered a gift?


How much is the tax the donor will pay for a gift of $20,000 ?

Expert:  FiveStarLaw replied 1 year ago.

Medical bills are treated slightly differently from other payments. The direct payment of medical bills by a 3rd party is not considered a gift. Therefore if the 3rd party were to make the payments directly to the medical provider, none of the $13,000 annual gift tax exclusion would be used.

In any event provided the donor has not gifted more than $5 million in his lifetime excluding the annual gift tax exclusions, no tax would be payable
Customer: replied 1 year ago.

Thank you for your prompt reply, is it correct to say that if I received a monetary gift of $20k in a year, the donor will be responsible to pay a donor tax on the $7K which is the amount in excess of the $13k gift tax exclusion?


What is the tax rate on this $7K?


Is there a rate table I can refer to?


Is the donor tax rate same for all states?

Expert:  FiveStarLaw replied 1 year ago.

Thank you for your prompt reply, is it correct to say that if I received a monetary gift of $20k in a year, the donor will be responsible to pay a donor tax on the $7K which is the amount in excess of the $13k gift tax exclusion?
yes if:
1. neither you or the donor are married. If married, the $13,000 gift tax exclusion would double
2. The donor has already gifted $5 million in his lifetime


What is the tax rate on this $7K?
Is there a rate table I can refer to?
http://www.irs.gov/instructions/i709/ch02.html

Is the donor tax rate same for all states?
no
FiveStarLaw, Tax Attorney
Category: Tax
Satisfied Customers: 36470
Experience: 25 years of experience helping people like you.
FiveStarLaw and 3 other Tax Specialists are ready to help you

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