If my employer would like to gift money to my family, do I still have to pay taxes over it?

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If my employer would like to gift money to my family, do I still have to pay taxes over it?

Asked on June 18, 2012 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You probably need to pay taxes. Even if the money is going to your family, if it is being paid at least in part because you are an employee, it could be seen as compensation, which is taxable income. Obviously, there are situations where it could be defensibly asserted that it is purely a gift, not compensation for work; for example, where your employer is an old family friend and can demonstrate having given gifts before you became an employee. For a more precise answer, based on all the unique facts of your situation, speak with a CPA; but as a general matter, in most cases, you would be taxed on this money.


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