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Category: Finance
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Experience:  Tax Accountant
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Hi, Do I have to pay taxes if I get money from my kid. For

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Hi, Do I have to pay taxes if I get money from my kid. For example i want to get his savings with me so he does not spend. can I get it for any amount or do i need to pay taxes when it goes beyond certain amount. Thanks
Thank you for contacting us to assist you today. My name is XXXXX XXXXX my goal is to provide information to the best of my knowledge to assist you.

You wanting to have access to, and oversee your kid's savings does not create a taxable event. As this will not be income to you, you will not have to pay tax on your kid's savings, even if the money is in your possession.

Please let me know if this clarifies matters for you.

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Customer: replied 3 years ago.

thanks, XXXXX XXXXX it is considered that he is giving it away to me. As you mentioned , it should be fine. but is,nt there any limit to the amount. For some maximum amount a tax liability is there or not?

Hello again,

If he is giving you the money, that would be considered a gift. The annual gift limit is currently $14,000 per year per individual. If he gifts more than this amount to you in a year, then he will need to complete a form 709 (Gift Tax Return). There is no tax due from you or him. The lifetime gift tax exclusion amount is currently at $5,250,000, which means that unless he gifts you this amount, there are not taxes due on the financial gifts.
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