Submitted By: someone
Answered: July 22, 2019 3:23 am

If I give my grandchild a cash gift, can I deduct it?

Gifts you make to people are not tax deductible. However, it’s good to know that the recipient of a gift is not subject to income tax on it, regardless of the size of the gift. If the gift is more than the annual gift tax exclusion ($15,000 in 2019), a donor (the person who gives the gift) may have to file a gift tax return, and in rare cases, pay gift tax. But this has no impact on income taxes.

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Tax Glossary

Modified adjusted gross income (MAGI)

This is generally adjusted gross income increased by certain items such as tax-free foreign earned income. MAGI usually is used to determine phaseouts of certain deductions and credits.

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