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| *Loan,banking and credit>>>income tax |
Sue is preparing taxes. She received $6,000.00 from her uncle, should that income be included on the 1040? |
Sue is preparing taxes. She received $6,000.00 from her uncle, should that income be included on the 1040? Banks do not report transactions to the IRS that are under 10,000 and Sue shouldn't either. In the US you can give and receive $10,000 as a gift without any income tax consequences. Gifts, bequests, and inheritances are not considered income. You don't have to claim it. It depends why she received the money. Does she work for her uncle? If yes, she must declare it. Did uncle simply give her a gift? Then no. Anyone who thinks $10,000 is the limit is misinformed. That limit is for cash transactions and gets reported to a different section at the Department of Treasury. Interest income over $10 is reported and most other income over $600 is reported by the payer. the number of different 1099 forms which can be issued has grown so fast recently that the IRS is running out of suffix letters. Sue should not inlude that income on the 1040 if it was a gift. LP should do his own homework. |
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