Comments on: Declaring Gift taxes for parents sending money?

By: Judy

Judy — Wed, 22 Oct 2008 01:07:19 +0000

The limit is $12K not $10k.

Each parent could give you $12k a year, so doesn’t sount like a problem. And if the send the check for your college fees right to the college, then that doesn’t count against the $12K, only the money they send you for your expenses would count.

It’s the total for a calendar year, so doesn’t matter if they send a lump some or a little at a time.

If they aren’t US citizens or residents, they don’t have to file a gift tax return anyway.

By: StephenWeinstein

StephenWeinstein — Tue, 21 Oct 2008 16:47:31 +0000

1. There is no limit to what you can receive. The limit is on what can be received without the giver owing gift tax. However, if your parents are not U.S. citizens or U.S. residents, gift tax may not apply to them anyway.

2. Payment of college tuition and living expenses by the parents of a student is “support”, like paying for a small child’s food and medical care, not a “gift”. Have your parents send the tuition money and fees directly to the college themselves. Have them send you only the living expense money.

By: v b

v b — Tue, 21 Oct 2008 02:02:04 +0000

Since your parents are neither US Citizens nor US Residents, they are not subject to US gift tax rules.

As far as reporting the gift, your obligation starts when the amount received is more than $100,000 in one year. Form 3520, but no tax is due.