Technical topics regarding tax preparation.
1-Jun-2023 8:12am
- Posts:
- 919
- Joined:
- 19-Oct-2020 7:38am
- Location:
- USA
Is the pocket money parents give to college student child considered as gift? I know the pocket money usually won't surpass the annual gift limit even if it is considered a gift. Just curious about that.
1-Jun-2023 8:29am
- Posts:
- 6477
- Joined:
- 23-Apr-2014 5:27pm
- Location:
- Maryland
It's probably considered support.
1-Jun-2023 2:17pm
- Posts:
- 366
- Joined:
- 11-Jul-2014 1:19pm
- Location:
- Oakland, CA
If the student is their dependent for the year, it is support. If the student is not their dependent, it is gift.
2-Jun-2023 10:03am
- Posts:
- 213
- Joined:
- 17-Oct-2015 6:47pm
- Location:
- Nebraska
Not necessarily correct - it is based on state law - age of majority. See this Tax Advisor article
https://www.thetaxadviser.com/issues/20 ... -2021.htmlit is also important to recognize that the federal income tax requirements for the dependency deduction fall under different rules and that a parent does not automatically have a legal obligation to provide support under state law just because the child qualifies as a dependent. It is possible to claim the adult child as a dependent under the support and other tests and still make a taxable gift in the form of the support.
Return to Taxation
Who is online
Users browsing this forum: BFStax, davidlat, Google [Bot], Google Adsense [Bot], JessCPA113, JoJoCPA, Miami88, Nilodop, rbynaker and 128 guests