Jump to content
Using an Ad Blocker? Consider adding HadIt.com as an exception. Hadit.com is funded through advertising, ad free memberships, contributions and out of pocket. ×
  • 0

Gifting Retro Pay Possible Tax Consequences


Tbird
This thread is over 365 days old and has been closed.

Please post your question as a New Topic by clicking this link and choosing which forum to post in.

For almost everything you are going to want to post in VA Claims Research.

If this is your first time posting. Take a moment and read our Guidelines. It will inform you of what is and isn't acceptable and tips on getting your questions answered. 

 

Remember, everyone who comes here is a volunteer. At one point, they went to the forums looking for information. They liked it here and decided to stay and help other veterans. They share their personal experience, providing links to the law and reference materials and support because working on your claim can be exhausting and beyond frustrating. 

 

This thread may still provide value to you and is worth at least skimming through the responses to see if any of them answer your question. Knowledge Is Power, and there is a lot of knowledge in older threads.

 

spacer.png

Question

  • Community Admin/Founder

here's a question and i'm just not sure what the answer is, anyone out there want to take a stab at this?

if you receive retro pay, non-taxable to you, and then you in turn gift it to someone else, will that person then be responsible for taxes on that gift?

Link to comment
Share on other sites

  • Answers 21
  • Created
  • Last Reply

Top Posters For This Question

Recommended Posts

any gift over 10,000 to any one person is subject to tax. The giver is taxed not the reciever. Depending upon the marrige laws of the state you live in, the gift may or may not be taxable between spouses. If you live in a "no fault, community property" state then the funds are considered to be ownwed by your spouse already. It doesn't matter if you spouse has accessto those funds (joint bank account) or not (single bank account).

You can gift 10k to 10 different people and not be taxed at all. Suppose you want to give one person 40K. It's better to give that person 10k and then give 10k each to his sposue and children. No tax.

Link to comment
Share on other sites

  • HadIt.com Elder

rdawg is correct but I believe that you can make a one time larger gift and than anything else would be subject to tax. As they say best to double check with IRS and probably an attorney or CPA before you pull the trigger.

Link to comment
Share on other sites

See Gift Tax Info

It seems that $12,000 per individual would be considered a gift in 2007--don't know for 2008.

The advice to see an attorney is a avenue I would take...

Ron

Link to comment
Share on other sites

  • HadIt.com Elder
any gift over 10,000 to any one person is subject to tax. The giver is taxed not the reciever. Depending upon the marrige laws of the state you live in, the gift may or may not be taxable between spouses. If you live in a "no fault, community property" state then the funds are considered to be ownwed by your spouse already. It doesn't matter if you spouse has accessto those funds (joint bank account) or not (single bank account).

You can gift 10k to 10 different people and not be taxed at all. Suppose you want to give one person 40K. It's better to give that person 10k and then give 10k each to his sposue and children. No tax.

"The giver is taxed not the reciever."

Are you saying that, for example, if I gave my Son $40K, then I would be the one to have to pay the tax on this $40K.

Well, that being the case, then he ain't gettin nuttin! B)

Link to comment
Share on other sites

Don't trust the IRS and the banking industry...Give each 9,999.99 in each day so the bank doesn't turn it into IRS to investigate. Once you give them 10,000.00 the bank notify's IRS then they start investigating. It turns into a big mess.

So give under 10,000.00 one time each day 9,999.00 is ok then next day 9,999.99 for however many days you want but never 10,000.00 or more in one day. Be smart and safe. We got screwed as well as uncle did 2x and in-laws did too.

Don't try to give 9,999.99 to more than 1 person a day too.

Edited by halos2
Link to comment
Share on other sites

  • Community Admin/Founder

thanks for the advice i will pass this along to the veteran.

Don't trust the IRA and the banking industry...Give each 9,999.99 in each day so the bank doesn't turn it into IRA to investigate. Once you give them 10,000.00 the bank noffys IRS then they start investigating. It turns into a big mess.

So give under 10,000.00 one time each day 9,999.00 is ok then next day 9,999.99 for however many days you want but never 10,000.00 or more in one day. Be smart and safe. We got screwed as well as uncle did 2x and in-laws did too.

Don't try to give 9,999.99 to more than 1 person a day too.

Link to comment
Share on other sites

  • veterans-crisis-line.jpg
    The Veterans Crisis Line can help even if you’re not enrolled in VA benefits or health care.

    CHAT NOW

  • Advertisemnt

  • question-001.jpegLooking for Answers? Here are tips for finding the answers you seek.

     

    All VA Claims questions should be posted on our forums. To post, you must register. Registration is free. You can register for a free account here.

     

    You can read the forums without registering.

     

    Tips on posting on the forums.
     

    1. Post a clear title like ‘Need help preparing PTSD claim’ or “VA med center won’t schedule my surgery” instead of ‘I have a question.
    2. Knowledgeable people who don’t have time to read all posts may skip yours if your need isn’t clear in the title. I don’t read all posts every login and will gravitate towards those I have more info on.
    3. Use paragraphs instead of one massive, rambling introduction or story. Again – You want to make it easy for others to help. If your question is buried in a monster paragraph, there are fewer who will investigate to dig it out.

     

    Leading to:

     

    Post straightforward questions and then post background information.

     

    Examples:
     
    • A. I was previously denied for apnea – Should I refile a claim?
      • Adding Background information in your post will help members understand what information you are looking for so they can assist you in finding it.
    • I was diagnosed with apnea in service and received a CPAP machine, but the claim was denied in 2008. Should I refile?
       
    • B. I may have PTSD- how can I be sure?
      • See how the details below give us a better understanding of what you’re claiming.
        • I was involved in a traumatic incident on base in 1974 and have had nightmares ever since, but I did not go to mental health while enlisted. How can I get help?

     

    This gives members a starting point to ask clarifying questions like “Can you post the Reasons for Denial from your claim?” etc.

     

    Note:

     

    • Your first posts on the board may be delayed before they appear as they are reviewed.
    • This process does not take long.
    • Your first posts on the board may be delayed before they appear as they are reviewed. The review requirement will usually be removed by the 6th post. However, we reserve the right to keep anyone on moderator preview.
    • This process allows us to remove spam and other junk posts before hitting the board. We want to keep the focus on VA Claims, and this helps us do that.
  • Most Common VA Disabilities Claimed for Compensation:   

    tinnitus-005.pngptsd-005.pnglumbosacral-005.pngscars-005.pnglimitation-flexion-knee-005.pngdiabetes-005.pnglimitation-motion-ankle-005.pngparalysis-005.pngdegenerative-arthitis-spine-005.pngtbi-traumatic-brain-injury-005.png

  • Advertisemnt

  • VA Watchdog

  • Advertisemnt

  • Ads

  • Can a 100 percent Disabled Veteran Work and Earn an Income?

    employment 2.jpeg

    You’ve just been rated 100% disabled by the Veterans Affairs. After the excitement of finally having the rating you deserve wears off, you start asking questions. One of the first questions that you might ask is this: It’s a legitimate question – rare is the Veteran that finds themselves sitting on the couch eating bon-bons … Continue reading

×
×
  • Create New...

Important Information

{terms] and Guidelines

<——>