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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29951
Experience:  Taxes, Immigration, Labor Relations
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Due to health issues my father has been financially helping

Customer Question

Due to health issues my father has been financially helping me. He gives me $1500/mth and my mother gives me $500/mth from a different account. It is my understanding that he keeps it under the gift amount so he doesn't need to pay taxes on this. I have been told I do not need to pay taxes on this due to the amount and circumstances but I am concerned this may be inaccurate. I am 48 yrs old and will be filing for disability.
Do I need to report this/pay taxes?
Is this considered income?
I need to file for bankruptcy and for either ObamaCare or medicaid but never know how to answer the question on income. I don't make any income but I receive non government help.
Your help is greatly appreciated!!
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

In the US - gift - is not taxable income for the recipient and you do not need to report it on the tax return.

There is no any amount limit.

It does not matter how the gift is transferred - as long as that is a gift - there is NO income tax liability.

Expert:  Lev replied 1 year ago.

Please see for reference IRS publication 525 -

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...

Expert:  Lev replied 1 year ago.

Another issue with gift tax...

Regarding your situation - if the donor (gifter) is an US person - the gift might be reported on the gift tax return.

The gift below $14,000 is not taxable gift but when the gift is above that threshold - it is reported on the gift tax return - form 709.

Regardless - there will NOT be any gift tax liability as long as the lifetime limit is reached - that limit is $5,430,000 for 2015
So far if your father gifted to you less than $14,000 - no reporting requirements.

If he total gifted amount is more than $14,000 - filing is required - but most likely there will not be any tax liability.

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