If I was given a relatively small amount of money from a relative, do I need to claim it on my taxes?
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If I was given a relatively small amount of money from a relative, do I need to claim it on my taxes?
About a month ago, my grandpa passed away and he left quite a bit of money behind to be split up between his children. For reasons I won’t go into my aunt decided to give me a small portion of her share, $1,000, and I’m
wondering if I should be worried about needing to claim it on my taxes.
Asked on February 18, 2017 under Estate Planning, Utah
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
No, such a small gift (well under the current $13,000 gift exclusion) is not treated as income and is not taxable. You need to neither report it on your tax return(s) nor pay any taxes on it. Because of how small it is, relative to the exclusion, your aunt will not need report it or have any tax consequences, either.
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