Did you know that gifting money to your children doesn’t offer a tax deduction? In this episode, Dr. Friday clarifies common misconceptions about monetary gifts. While your children won’t pay taxes on the money you give, any applicable taxes are your responsibility. Learn how gifting up to $18,000 per person annually—or $36,000 for married couples—can help, and understand the tax implications for these transactions.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Gifting money to individuals. People often think that if I gift my children money, I can deduct it as a way of gifting. Let’s just put that to bed. No, that’s never going to happen. That would be transferring money to your kids, and everyone would love to do that for a way of saving tax dollars. You can gift your children money, and they will not pay tax. You, the giver, will pay any tax if any is due. If it’s just sitting in your checking account, you’ve already paid tax. You give the money to your children; they do not pay tax. You can do that $18,000 per person. So if you’re a husband and wife, $36,000. Need help? Give us a call at 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.