Payments Pursuant to a Divorce Settlement:Alimony is not a gift, but rathertaxable incometo the recipient (payee) and a tax-deductible contribution to thepayer. Property transfers within a year of a marriage's termination and related to that termination are deemed pursuant to a divorce decree an...
Rewards that are given away as part of new banking account recruitment drives are considered income and can be taxed. If the value of those taxable rewards is more than $600, banks are required to send 1099 tax notices to both the IRS and the rewards recipient.creditcards.com...
Are distributions from a trust taxable to the recipient? When trust beneficiaries receive distributions from the trust's principal balance, they do not have to pay taxes on the distribution. ... The trust must pay taxes on any interest income it holds and does not distribute past year-end. ...
If you get a gift card as an actual gift -- as a present from a family member or friend, say -- then it's not taxable income. You don't have to report it or pay taxes on it. There is such a thing as gift tax, but it's paid by the person giving a gift, not the recipie...
the IRS focuses on the giver, not the recipient. According to the IRS, the donor is generally responsible for paying a gift tax when money or property is passed to another individual. No matter how lavish, your wedding gifts are not considered to be income by the IRS and won’t increase...
Charitable contributions allow the donor to lower their tax bill in the year of contribution if made to qualified charities. Crowdfunding campaigns that gather donations for personal use are generally considered personal gifts and are thus not subject to taxes for the recipient. If you gather m...
The pastor did not report any of the “blue envelope” donations from members of his church as taxable income on his Form 1040. The IRS audited the pastor’s tax returns, and claimed that these offerings were taxable income rather than nontaxable gifts. The pastor appealed to ...
It “gets tricky, because you have to make sure that they qualify,” said Jorie Johnson, a financial planner at Financial Futures. If the person you’re gifting to is eligible, you’d simply give the gift recipient money to deposit into ...
As the holiday season approaches, many parents and family members are searching for the perfect gift for the kids in their lives. Gift cards can be a great option, as they allow the recipient to choose their own gift and can be used at a... ...
Now that the holidays are behind us, you're probably done shopping for the year. And if you have gifts that you or a recipient didn't want or need, it's important to know what the big retailers' return policies are in case you need to make a return....