Thursday, January 16, 2014

Is Your Christmas Gift Taxable?


Exchanging gifts is one of the fun traditions of Christmas, but do you need to report the gifts you received on your tax return? Chances are, most of the Christmas gifts you gave or received do not need to be listed on any tax return. Only gifts with a combined value in excess of $14,000 may need to be reported. If you gave more than $14,000 worth of gifts, to one recipient during 2013, you will need to report it to the Internal Revenue Service on a 2013 gift tax return. But, if you receive gifts worth more than $14,000 from one individual, then the giver of the gift needs to report it on his/her gift tax return. Gifts from individuals under the yearly amount of $14,000 do not need to be reported. Gifts from your employer on the other hand, are a different story. Any gift, whether cash or goods, needs to be reported on the employer’s payroll tax reports. Cash gifts (actual cash, gift cards, bonuses) are treated as income and will need to be included on your W-2. If your employer gives an actual gift, the value of the gift needs to be reported as income on your W-2. If you have any questions about taxable gifts you may have given or received, contact us and we will be happy to assist you!
518 Arbor Hill Rd.
 Kernersville, NC 27284
 Ph: 336-996-3338
 
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
 

No comments:

Post a Comment