My 15-year-old daughter was given $30,000
I have the money for her until she needs it for college. Will we need to claim it on our taxes? Should I put it in a tax-deferred account before year end?
Best Answers
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Hello, and thank you for your question.
Generally, if the money was a gift from a family member for her college, the money is not taxable to her or you. Whoever gave the money may have other tax reporting obligations for the gift (gift tax returns) but there is nothing that you or your daughter needs to report for the money.
You could consider education accounts like a 529 plan for the money. I would contact a financial advisor or your state's 529 plan for more information about it.
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Gifts are not taxable to the recipient. The person giving the gift may be required to file a gift tax return.
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The friend will likely need to file a gift tax return, but neither you nor your daughter need to do anything to report the gift.
Answers
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It was a gift from a friend, not a family member