2 Comments October 27th, 2008

Can I deduct gifts (money) that I have paid to my children? if so how much?

gifting money
vedahardy1 asked:


How much can I claim on gifts given to our children for a deduction on our tax return?

janniaraquel
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2 Responses to “Can I deduct gifts (money) that I have paid to my children? if so how much?”

  1. Gem Says:
    October 28th, 2008 at 8:49 am

    NOTHING.

    And if you gave them more than $11,000 ($22,000 if you are married) you may end up owing a 50% gift tax.

    Why would there be a deduction, in essence lowering your tax burden, because you choose to gift your children?

  2. taxreff Says:
    October 29th, 2008 at 4:31 am

    Gifts are neither taxable to the recipient nor deductible by the giver.

    If you give a person over $12K in a year you would need to file a gift tax return. No tax would be owed, however, unless you have exceeded your $1M lifetime exclusion.