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Several issues...1.In the US - gift - is not taxable income for the recipient and you do not need to be reported to the IRS.
There is no any amount limit. Please see for reference IRS publication 525 page 31 left column - - http://www.irs.gov/pub/irs-pdf/p525.pdf
Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you.
That would be the donor who files form 709 - gift tax return - not recipients of the gift. The gift tax return is required when the total value of the gift is above $14,000 (for 2013) per person per year.There will not be any gift taxes unless the lifetime limit of $5,250,000 (adjusted every year for inflation) is reached.So - it is likely that the gift tax return will be required to be filed by the donor, but there will not be any gift tax due.The US citizen is required to file the gift tax return if the gift he made per person per year is above the filing threshold. 3.If your parents pay your credit card bill, or student loan or any other YOUR obligations - that will be considered a gift to you. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.--Gifts that are not more than the annual exclusion for the calendar year.
--Tuition or medical expenses you pay for someone (the educational and medical exclusions).
--Gifts to your spouse.
--Gifts to a political organization for its use.
So - if your parents will pay your medical or educational bills directly to medical or educational organization - these are not taxable and not reportable - but other gifts are reportable.
Very helpful, and quick. Thanks very much!
You are welcome.