Question about a large gift of cash

daveinlv

My income has been for the past 4 years, strictly social security and a VA pension. This year, my sister-in-law has paid me back for a loan my wife and I gave her about 15 years ago. The loan repayment is $6,000, and to thank me for the loan, she gave me (I'm now a widower, since 2020) a gift of $10,000. Do I have to file/pay taxes on both the repayment AND the gift, or just the gift? Also, I've heard talk about there being a form that needs to be filed with the IRS? whenever there's a $10,000 or more transferred.

Thanks

DaveinLv

LindsayA

Hello,

That's a great question and one that a lot of people have. You do not need to report that loan repayment or the extra gift she gave you as taxable income. The gift limitation for 2024 is $18,000 without any tax consequences.

The reporting requirement of 10,000 for a single transaction is for businesses.

Sincerely,

LindsayA