Reply to thread

Message: [QUOTE="retro44, post: 2329093, member: 587"] [SIZE=5][B]The Gift Tax[/B][/SIZE] Presumably you already paid taxes on the money you're giving at the time you earned it. If your generosity qualifies as a gift with the IRS, you'll have to pay taxes twice on the amount that exceeds the exclusion: once in income tax, then again for the federal gift tax. The 2012 federal gift tax rate is 35 percent. If you're single, your $37,000 gift will cost you $12,950 in taxes. If you're married and you only exceeded the exclusion by $24,000, you'd owe the IRS $8,400. Gifting money over the exclusion limits requires filing Form 709 with the IRS along with your return. [/QUOTE]