Getting paid by parent

[Anonymous]

Anonymous wrote:

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

Are you married?

Your parent can also give 19K to your spouse.

[Anonymous]

Anonymous wrote:

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

The $19k per year is in addition to the $14MM exclusion…so you can provide that to anyone without requiring you file a form with the IRS detailing the gift.

But your parent could hand you $14MM and it would be exempt to you from federal income tax…but your parent would have to let the IRS know they reached the max so that any additional
Dollar given to you would be taxable.

[Anonymous]

An adult (anyone not still perusing their education) getting 18K a year from their parents every year is embarrassing. Stand on your own two feet OP. And everything doesn’t have to be transactional. It sounds like in a variety of ways you are already doing better than your siblings. Count your blessings and stop trying to extract money from family.

[Anonymous]

Anonymous wrote:An adult (anyone not still perusing their education) getting 18K a year from their parents every year is embarrassing. Stand on your own two feet OP. And everything doesn’t have to be transactional. It sounds like in a variety of ways you are already doing better than your siblings. Count your blessings and stop trying to extract money from family.

That’s silly but it’s gross to expect payment for helping.

[Anonymous]

Just have them take cash out of the bank and give it to you.

[Anonymous]

The annual limit is just the point at which they have to fill out some IRS paperwork.

[Anonymous]

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

Unless it exceeds the annual limit - then the mom has to file a gift tax return.

[Anonymous]

Anonymous wrote:

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

I’m honestly distressed by how many people on dcum seem to have enough money to give or receive the annual exemption but not enough brains to google this for two minutes. It’s not complicated. If you had an “understanding” that they would have to pay tax on gifts over the annual exemption, it’s because you never made the slightest effort to learn about it. Two minutes is generous. 30 seconds would do.

[Anonymous]

What taxes?
How did this idea even pop into your head? How is it that you need to charge your parent at all? Not having money and some ridiculous idea of taxes are most likely connected. I didn't need money two months into getting a low paying job at 18.
The parent can hand you lots of cash and it's nobody's business. Who doesn't know it, is my question.
Glad you asked, but what else are you doing to yourself to complicate your life.

[Anonymous]

Anonymous wrote:

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

it's two separate things, but ultimately intertwined at death for estate taxes. The $19K is the annual gift tax limit. If you gift over that, you simply have to report it to the IRS and it's tracked/goes against your annual $15M (one good thing from the BBB, it's about the only thing good). Nothing happens until the gifter dies and has to declare it against their estate. Not a problem most will have

[Anonymous]

Something about this thread stinks.

[Anonymous]

If there is any possibility that your parent will try to go on Medicaid in the next 2 years, any payments made to you may come under some additional scrutiny.

[Anonymous]

Anonymous wrote:An adult (anyone not still perusing their education) getting 18K a year from their parents every year is embarrassing. Stand on your own two feet OP. And everything doesn’t have to be transactional. It sounds like in a variety of ways you are already doing better than your siblings. Count your blessings and stop trying to extract money from family.

No it is not. We gift our kids that (and will their spouses once they have them). Why? Because we will be impacted by the Cap on Estate transfers (yeah I know it's now $15M/person, and yes we will likely exceed that). So it's the best way to transfer wealth and avoid extra taxes. Also it helps our kids in their 20s and 30s much more than when they are 50+ and we are dead. It can (and will ) change the trajectory of their lives. Allow them to "work closer to their house", "take a less stressful job where they have more time with family", etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:An adult (anyone not still perusing their education) getting 18K a year from their parents every year is embarrassing. Stand on your own two feet OP. And everything doesn’t have to be transactional. It sounds like in a variety of ways you are already doing better than your siblings. Count your blessings and stop trying to extract money from family.

No it is not. We gift our kids that (and will their spouses once they have them). Why? Because we will be impacted by the Cap on Estate transfers (yeah I know it's now $15M/person, and yes we will likely exceed that). So it's the best way to transfer wealth and avoid extra taxes. Also it helps our kids in their 20s and 30s much more than when they are 50+ and we are dead. It can (and will ) change the trajectory of their lives. Allow them to "work closer to their house", "take a less stressful job where they have more time with family", etc.

Purely bragging, nothing else.

[Anonymous]

Anonymous wrote:

Anonymous wrote:An adult (anyone not still perusing their education) getting 18K a year from their parents every year is embarrassing. Stand on your own two feet OP. And everything doesn’t have to be transactional. It sounds like in a variety of ways you are already doing better than your siblings. Count your blessings and stop trying to extract money from family.

No it is not. We gift our kids that (and will their spouses once they have them). Why? Because we will be impacted by the Cap on Estate transfers (yeah I know it's now $15M/person, and yes we will likely exceed that). So it's the best way to transfer wealth and avoid extra taxes. Also it helps our kids in their 20s and 30s much more than when they are 50+ and we are dead. It can (and will ) change the trajectory of their lives. Allow them to "work closer to their house", "take a less stressful job where they have more time with family", etc.

This. My mom got lots of help. She does not give us a dime. We are in our 59s and now fine on our own. It would have helped far more early on. Now it’s meaningless.