What tax restrictions apply to minors receiving large monetary gifts from non-relatives? How much can they receive?


According to an overview by TurboTax:

If you give people a lot of money, you might have to pay a federal gift tax. But the IRS also allows you to give up to $14,000 in 2016 to any number of people without facing any gift taxes, and without the recipient owing any income tax on the gifts.

Generally, if it kept under $14,000 you should not face any consequences.

For gifts more than $14,000:

Gifts are neither taxable or deductible on your tax return. Any gift to an individual that exceeds $14,000 in a year requires a separate gift tax return to be filed (form 709) by the giver - the receiver of the gift does not report anything. It will not be immediately taxable, but will reduce your lifetime exclusion.

However, it is always best to consult a CPA.

  • I think there is also a lifetime limit, and I recall something about __ gifts to minors adding more detail, but I know I'm missing a word.
    – user4460
    Mar 30 '17 at 22:24

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.