Getting paid by parent

[Anonymous]

I have one parent left, and we both know I do most of the work. The other sibling has zero executive function and has mental health disorders, including paranoia.

My parent is willing to pay me for the 50-70 hours of work I've done getting their house ready to sell. I took a lot of time off of work without pay to do this, so I could use the money.

I know I would have to pay taxes on the money if they paid me directly. Is there a legal way around this? For example, my parent could pay for a medical procedure I need or something like that?

TLDR: How can my parent legally pass me money tax free to pay be back for my time?

[Anonymous]

You don’t have to pay taxes. Your parent has a $14MM lifetime exclusion on money they give to you and it doesn’t matter if it’s when they are living or you inherit.

Also, you can gift another $18k per year that doesn’t impact the exclusion above.

[Anonymous]

Anonymous wrote:You don’t have to pay taxes. Your parent has a $14MM lifetime exclusion on money they give to you and it doesn’t matter if it’s when they are living or you inherit.

Also, you can gift another $18k per year that doesn’t impact the exclusion above.

This isn’t technically true. If this is a payment for service as OP describes, it would be taxable income to OP.

That said, call it a gift and there are no tax ramifications.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don’t have to pay taxes. Your parent has a $14MM lifetime exclusion on money they give to you and it doesn’t matter if it’s when they are living or you inherit.

Also, you can gift another $18k per year that doesn’t impact the exclusion above.

This isn’t technically true. If this is a payment for service as OP describes, it would be taxable income to OP.

That said, call it a gift and there are no tax ramifications.

Correct…I mean I doubt there is a service contract in place for payment.

[Anonymous]

Yeah, unless they’ve already given you the annual exemption they can just pay you cash and no one reports it. It’s fine.

[Anonymous]

Just have them give you money. Why would you take payment from a parent to help?

[Anonymous]

Anonymous wrote:Just have them give you money. Why would you take payment from a parent to help?

The answer is in the OP.

-not OP

[Anonymous]

Anonymous wrote:I have one parent left, and we both know I do most of the work. The other sibling has zero executive function and has mental health disorders, including paranoia.

My parent is willing to pay me for the 50-70 hours of work I've done getting their house ready to sell. I took a lot of time off of work without pay to do this, so I could use the money.

I know I would have to pay taxes on the money if they paid me directly. Is there a legal way around this? For example, my parent could pay for a medical procedure I need or something like that?

TLDR: How can my parent legally pass me money tax free to pay be back for my time?

How much money are we talking about? Even at $100/hr, it's $7K. Just have them withdraw the money in cash and hand it over to you. Or send your electronically calling it a gift (as long as it is under $18K).

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don’t have to pay taxes. Your parent has a $14MM lifetime exclusion on money they give to you and it doesn’t matter if it’s when they are living or you inherit.

Also, you can gift another $18k per year that doesn’t impact the exclusion above.

This isn’t technically true. If this is a payment for service as OP describes, it would be taxable income to OP.

That said, call it a gift and there are no tax ramifications.

OP, literally nobody cares about the bolded.

Don't make this more complicated than it is.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You don’t have to pay taxes. Your parent has a $14MM lifetime exclusion on money they give to you and it doesn’t matter if it’s when they are living or you inherit.

Also, you can gift another $18k per year that doesn’t impact the exclusion above.

This isn’t technically true. If this is a payment for service as OP describes, it would be taxable income to OP.

That said, call it a gift and there are no tax ramifications.

OP, literally nobody cares about the bolded.

Don't make this more complicated than it is.

This. I once sold something for $15K cash to a stranger, spent most of it (normal course of living) and deposited $6K into the bank months later. never reported it as income nor had to explain anything to the bank.

[Anonymous]

Anonymous wrote:Just have them give you money. Why would you take payment from a parent to help?

We already get the max money as a gift so I did not know I could take more than that legally and without paying taxes. I had heard of the $13M exclusion but then I wonder why would they have the annual limit of $19K? It did not make sense to me.

My understanding was that my parent would have to pay tax on anything over the $19K they already give me.

The sibling also gets the max gift. Parent wanted to compensate me.

OP

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You don’t have to pay taxes. Your parent has a $14MM lifetime exclusion on money they give to you and it doesn’t matter if it’s when they are living or you inherit.

Also, you can gift another $18k per year that doesn’t impact the exclusion above.

This isn’t technically true. If this is a payment for service as OP describes, it would be taxable income to OP.

That said, call it a gift and there are no tax ramifications.

OP, literally nobody cares about the bolded.

Don't make this more complicated than it is.

Okay. Thanks.
OP

[Anonymous]

Anonymous wrote:Just have them give you money. Why would you take payment from a parent to help?

Read the fourth sentence in the original post. Not everyone makes a zillion dollars and can afford to take a month off of work unpaid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Just have them give you money. Why would you take payment from a parent to help?

Read the fourth sentence in the original post. Not everyone makes a zillion dollars and can afford to take a month off of work unpaid.

Anyone not comfortable is not taking a month off unpaid.

[Anonymous]

Each parent can give you $19,000 per year and each member of your family $19,000 per year. So even if you’ve already received $38,000, they can give your spouse money or put money in a fund for your kids. Or yes, thru can pay directly for medical procedures.