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).
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