Free gifts, and filing taxes
Okay, so the big gifts we got in 2005 valued over $600, how do we report these on our taxes? If I use turbo tax will it explain it to me? Are these companies, like NUI tech for the ibook, sending us any forms that we need? Do I need a copy of my gift redemption voucher? Or do we just report the gift amount ($999) as extra income? I just want to make sure I'm doing this properly.
But to answer your question. You just report the iBook as extra income. I don't think Nuitech will be sending us anything...
I'm having the hardest time figuring out how to report this extra income amount. I'm using taxact.com, and when I go to Other Income it doesn't really have an option to enter "Gifts" and then on the irs.gov page it says not to enter gift amounts on line 21. How/where are you all reporting it on your 1040? This is so confusing... ( I wish I could figure it out! Argh...
I'd help but I ain't doing my taxes quit yet...
[quotebd7ea53d25="Wolfeman"]I'd help but I ain't doing my taxes quit yet...[/quotebd7ea53d25]
my understanding is that they have until jan 31 to send you a 1099-MISC for the gift, which you then report to the IRS
one of the many tax loopholes is that you are allowed to recieve 10k in gifts from people who are unrelated to you without declaring them.
My question is do these "gifts" acctually gifts and can I not claim them as that?
[quote279fd5f444="nick_e"]one of the many tax loopholes is that you are allowed to recieve 10k in gifts from people who are unrelated to you without declaring them.
My question is do these "gifts" acctually gifts and can I not claim them as that?[/quote279fd5f444]
Interesting. Do you have a link or any type of quotation for this?
Well the ones we filled the w9's for will act like income to us. But ya, if you didn't fill out a w9, you can receive 10k as a gift and not report it.