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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16579
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My widowed mother can give me $14000 as a gift, or as a salary.

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My widowed mother can give me $14000 as a gift, or as a salary. Is it better for me to receive it as a tax-free gift, or as a taxed salary for social security benefits? Which is better for her?

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 :

How are you today?

MyVirtualCPA :

It is better for your mother to give this to you as a GIFT rather than a salary.

MyVirtualCPA :

It is better for her, as well. There is no gift tax on the transaction

MyVirtualCPA :

There would be little benefit to getting the amount as a salary for social security purposes. On top of that you would owe tax. $14,000 will not add much, if anything, to the amount you will receive at full retirement age.

MyVirtualCPA :

As a salary, your mother could not write off the salary unless you were performing services for her. It would be a gift, even if she tried to treat it as salary

Customer:

ok, sounds good.

MyVirtualCPA :

Is there anything else that I could assist you with?

MyVirtualCPA :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

no, thank you. yes i will rate you as excellent.

MyVirtualCPA :

Thank you so much

Customer:

will this be emailed to me?

MyVirtualCPA :

I think so, but you can also print this using your browser print function, or you can bookmark the URL and come back any time.

MyVirtualCPA :

But, I think the site is set up to send you an email of the chat once rated

Customer:

ok, bye

MyVirtualCPA :

Thanks

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