if someone send me 3,000 in paypal as friends an family as gift do I have to report it to the IRS? its under the tax gift amount.?
- curtisports2Lv 71 month ago
YOU never report gifts. The GIVER of the gift must file a gift tax return if gifts to a single person in a single year exceed $15,000. That's all - they must file a gift tax return.
Chances are they will never owe a penny of gift tax. Gifts you file those returns for are totaled up over your lifetime and subtracted from your lifetime estate exemption of something above $5 million. You only pay estate tax when your estate exceeds that amount.
Having said this, if the money was payment to you for goods or services and not a gift, it is income to you and you must report it. The giver is committing fraud by lying about the purpose of the payment. And you are committing tax evasion if you fail to report the income.
- kelby7670Lv 71 month ago
You do nothing at all.
- STEVEN FLv 71 month ago
US Federal gift taxes are assessed on the GIVER, not the recipient. Even if the gift exceeded the annual exemption, you wouldn't report as the recipient.
- 1 month ago
Did they pay you for something? Did you make a profit on that something? Then it is income. What is the money FOR is the real question.
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- Max HooplaLv 71 month ago
Gifts to you are not income and not taxable.
- StephenWeinsteinLv 71 month ago
It depends on WHY the person sent it to you.
If the person sends it to pay you for doing any type of work, then you must report it.
If it really was a gift and the person really was a friend or family member, then you do not report it.
- Anonymous1 month ago
Guess that would depend on what the 3,000 was.