Today TaxMama® hears from John in the TaxQuips Forum with this quick question. “I gifted monies ($5,000) to my daughter in 2011. How do I account for this in my 1040 filing? What other associated forms need to be included to do this?”
Rita Lewis, our Enrolled Agent from the CT/NY area responds. She says:
Your annual gift exclusion for 2011 was $13,000. So unless you gave her over $13,000 including all other gifts to her during 2011 (birthdays, holidays, etc.), you have no requirement to file a gift tax return.
You do not report gifts on your personal income tax return Form 1040, nor does she.
Enjoy your good relationship.
TaxMama adds – for more information about gifts and gifting, see IRS Publication 950 – and watch your head spin.
And remember, you can find answers to all kinds of questions about gifts and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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