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.

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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