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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I want to pay for my grandson;s daycare abt $5,000. How

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I want to pay for my grandson;s daycare abt $5,000. How should I give this - pay directly to school or give money to my daughter? Also how to handle on my taxes?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

It does not matter how you handle this - if you give it directly to your daughter or pay the daycare. It's still a gift

MyVirtualCPA :

As this is under $14,000 then you will simply give the money to your daughter or the school (it doesn't matter) and that is it

MyVirtualCPA :

There's nothing to do on your taxes

MyVirtualCPA :

This is not deductible to you, and is not taxable to your daughter

MyVirtualCPA :

Is there anything else that I can help you with? If not, please rate my response as "excellent" so that I can receive credit for assisting you today

Customer:

Why isn't it deductible for my taxes?

MyVirtualCPA :

Gifts are not tax deductible

Customer:

A friend's father used to give all of her siblings say $10,000 a year with I thought the understanding it was helping out wit his taxes???no???

MyVirtualCPA :

No it did not...gifts are never tax deductible to the person giving the gift, and are never taxable to the recipient

MyVirtualCPA :

Now, if he owned a business and paid them that as a salary that would be deductible but giving gifts doesn't help with taxes

Customer:

ok. I guess it just helps in the long run on what is left in the estate at time of death.

MyVirtualCPA :

Yes, but your estate is not taxable unless you have over $5.2 million in your estate

Customer:

nope. Wish I did. Thank you.

MyVirtualCPA :

You're welcome. If you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

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